D’Arcangelo Blog

Deducting Qualified Business Income

The Tax Cuts and Jobs Act (“the TCJA”) created a new deduction for small business owners who operate pass-through entities. That includes domestic companies operated as sole proprietorships or through S corporations, partnerships, certain LLCs, trusts, and estates. Income from such entities may allow business owners to deduct 20% of their qualified business income (QBI).

The New Math of Municipal Bonds

Stock market volatility has some investors thinking about putting some money into bonds. Historically, bonds have offered relatively stable prices. One key decision facing bond market investors is whether to choose regular, taxable bonds or tax-exempt municipal bonds. (This discussion concerns investments in taxable accounts because tax-exempt municipals and muni funds typically don’t belong inContinue reading →

Handling Qualified Charitable Distributions

As the filing season for 2018 tax returns reaches a peak, many people will learn that they’re no longer itemizing deductions. The Tax Cuts and Jobs Act of 2017 placed limits on some deductions and increased the standard deduction significantly, so most taxpayers are taking the standard deduction, rather than itemizing. One result is thatContinue reading →

Why Right Now is Double IRA Season

The start of each year might be considered “Double IRA” season. Until Tax Day — April 15th this year — you still can make contributions to an IRA for 2018, to save additional funds for retirement. Most workers and their spouses may each contribute up to $5,500, or $6,500 for those who were 50 orContinue reading →

Putting Stock Market Volatility Into Perspective

The U.S. stock market saw extreme volatility in the fourth quarter of 2018. Even now, in February 2019, the market is still showing ripple effects from the end of last year.  Reflecting on the last stunning market retreat in late 2008, reached its bottom in February 2009. But how do we use this information forContinue reading →

Five Point Meal Expense Checklist

The Tax Cuts and Jobs Act (TCJA) of 2017 generally disallowed all deductions for business entertainment, amusement, and recreation. However, the TCJA did not specifically turn thumbs up or down on the deductibility of business meal expenses. So how can we determine which business meal expenses can be claimed as a deduction? Example: Jim Morgan,Continue reading →

Year-End Business Tax Planning Tips

Under the Tax Cuts and Jobs Act (“TCJA”), equipment expensing permitted by Section 179 of the tax code was expanded. In 2018, your business can take a first-year deduction of up to $1 million worth of equipment purchases. You might buy, say, $400,000 worth of equipment and deduct $400,000 from your company’s profits this year.Continue reading →

Charitable Donations and Your Tax Return

More taxpayers are likely to take the standard deduction for 2018, rather than claim itemized deductions. Therefore, they’ll lose the tax benefits from their charitable contributions. Example 1: Art and Beth Dean are in their 40s and have paid off their home mortgage. They seldom have substantial unreimbursed medical expenses and typically contribute around $7,000Continue reading →

Sizing Up the Standard Deduction

Under the new, as well as prior, tax law, taxpayers can either take a standard deduction or itemize deductions on Schedule A of IRS Form 1040. Typically, tax preparation involves comparing the total of itemized deductions with the standard deduction and choosing the larger amount. Most people have used the standard deduction and that probablyContinue reading →