D’Arcangelo Blog

A Grain of SALT in New IRS Notice

Taxpayers who itemize deductions on Schedule A of their tax return have been able to deduct outlays for state and local income tax as well as property tax with no upper limit. As of 2018, the Tax Cuts and Jobs Act of 2017 changes that. 

Considerations for Buy-Sell Agreements

Among the trigger events of a small company buy-sell agreement, death of a co-owner typically is included.    Example 1: Wendy Young and Victor Thomas both own 50% of YT Corp. They have a buy-sell, which calls for Wendy to buy Victor’s interest in YT if he dies. Similarly, Victor will buy Wendy’s interest inContinue reading →

Education As A Small Business Fringe Benefit

Among the tax deduction opportunities that have vanished with the passing of the Tax Cuts and Jobs Act of 2017 are miscellaneous itemized deductions that exceed 2% of the taxpayer’s gross income. Such deductions included unreimbursed employee business expenses.

Forever G.I. Bill Extends Benefits to Family Members

When you think of the G.I. Bill, you probably recall reading about a program designed to help military veterans receive college educations after they left the armed forces following World War II. Somewhat less known is that the G.I. Bill has endured, in various forms, until present times. 

How The New Tax Law Affects 529 Plans

For many years, 529 college savings plans have offered a tax-favored way to save for higher education. These plans, officially qualified tuition programs, are named for the IRC section that provides their advantages. 

Moving Your Business to a Low-Tax State

State and local tax (SALT) deductions have a new cap with the passing of the Tax Cuts and Jobs Act of 2017.  Beginning with your 2018 tax return, if you itemize deductions, you can count no more than $10,000 a year of SALT deductions for income and property tax on a single or joint tax returnContinue reading →

Estate Planning with Heirs in Mind

The federal estate tax exemption now exceeds $11 million per person. Accordingly, few individuals or married couples will owe this tax. Nevertheless, there is more to successful wealth transfer than reducing or eliminating estate tax. Ideally, you’ll want your assets to pass to the desired recipients with a minimum of turmoil and expense. How isContinue reading →

More Give in the Gift Tax

The Tax Cuts and Jobs Act of 2017 increased the federal estate tax exemption to $11.18 million for 2018. That’s per person, so the combined exemption for a married couple can be as much as $22,360,000 worth of assets this year. The same ceilings apply to the federal gift tax, which offsets the estate tax. 

Take Steps to Avoid the Warm Weather Slow Down

During the summer, it may be true that “the living is easy,” as the old song goes. The midyear season, though, is often not so easy at small businesses because many employees are taking vacations. Total work hours often shrink and so may company productivity. 

Home Equity Loans May Still Be Deductible

The Tax Cuts and Jobs Act of 2017 affects the tax deduction for interest paid on home equity debt as of 2018. Under prior law, you could deduct interest on up to $100,000 of home equity debt, no matter how you used the money. The old rule is scheduled to return in 2026.