The Tax Cuts and Jobs Act (TCJA) made several changes to deductions for meal and entertainment expenses. I went through these changes in my blog of January 2018, explaining that many of the expenses that were either 100% or 50% deductible were changed to being only 50% or not deductible at all. The biggest change was that entertainment expenses would no longer be deductible at all.
Starting school can not only costly for students, but many teachers and aide also incur extra costs as they purchase extra supplies for the classroom. There is a special tax deduction for educators that allows a teacher, counselor, principal, or aide to deduct up to $250 of these expenses.
It’s that time again when the kids head off to school. I hear parents everywhere discussing the cost of college including tuition, books, room and board, not to mention transportation, clothing and entertainment. As these costs continue to escalate, it is more important than ever to plan for these expenses. One way that I know that can help is by setting up a college savings plan called a “529 plan” or qualified tuition program. The one that I am most familiar with is the Iowa College Savings Program that is especially beneficial to Iowa residents. Read More
If you took a trip already this summer, you are possibly wondering if any of the trip could be a business trip and therefore be deductible on our tax return. Now is a good time to review some of the travel rules and what can be deductible as a business expense.
I am looking for a new vehicle. I never really thought of an electric vehicle until I became a bit infatuated with a Tesla which, as I am sure you know, is an electric car. Being a CPA, I also knew about the tax credit of $7,500 for certain electric vehicles so that was enticing, also. Then I heard on the news that the credits for Tesla vehicles are being phased out and so I decided I needed to do some research on these credits. And here are my findings. Read More
The end of the year is fast approaching and after the end of the year, your chance to make tax saving moves will be limited. The Tax Cuts and Jobs Act (TCJA) made some major changes to the federal tax laws that will affect nearly all individuals.
Well, it is that time again! Not just for Holiday parties and Christmas shopping, but even more importantly, it’s time to do your tax planning! Why, you may ask? Well, here are the top five reasons I recommend planning to my clients.
I am sure you have heard of all the changes made to the federal tax law, but did you know that Iowa also passed an Iowa Tax Reform Bill? It was signed into law on May 30, 2018 by Governor Kim Reynolds. Here are a few of the highlights and when to expect the changes.
Last month we started the discussion about the new limitation on business interest deduction. I gave the three exceptions to the limitation.
- The Small Business with average annual gross receipts of $25 million
- Electing Real Property Business
- Electing Farm Business
For more information about these exceptions, please see last month’s blog.
This month I want to discuss how the limitation is calculated if you don’t meet one of these exceptions.