Author archives: Brian Stautberg

April 30 , 2019 | Posted by Brian Stautberg |

Multi-state Resident? Watch Out for Double Taxation

Multi-state Resident? Watch Out for Double Taxation

Contrary to popular belief, there’s nothing in the U.S. Constitution or federal law that prohibits multiple states from collecting tax on the same income. Although many states provide tax credits to prevent double taxation, those credits are sometimes unavailable. If you maintain residences in more than one state,…

January 30 , 2019 | Posted by Brian Stautberg |

Avoid Penalties by Abiding by the NQDC Tax Rules

Nonqualified deferred compensation (NQDC) plans pay executives at some time in the future for services to be currently performed. If you participate in such a plan, or your business offers one as an employee benefit, it’s critical for everyone involved to abide by the applicable tax rules. Of course, in the hectic course of the…

March 15 , 2018 | Posted by Brian Stautberg |

Tax Cuts and Jobs Act Impact on Retirement Plans and IRAs

The Tax Cuts and Jobs Act modifies several provisions related to retirement plans and IRAs. These include:

  • the repeal of the special rule permitting recharacterization of Roth IRA conversions,
  • an increase in the period during which a qualified plan loan offset amount may be rolled over,
  • relief for qualified 2016 disaster distributions, and
  • an…
March 12 , 2018 | Posted by Brian Stautberg |

Changes to Alternative Minimum Tax for Individuals

The Tax Cuts and Jobs Act temporarily increases the alternative minimum tax (AMT) exemption amounts for individuals for tax years 2018 through 2026 and significantly increases the point at which the exemption begins to phase out. The AMT system was originally enacted to ensure that all taxpayers, particularly higher-income taxpayers, pay at least a minimum…

March 8 , 2018 | Posted by Brian Stautberg |

Impact of the Tax Cuts and Jobs Act on Homeowners

Traditionally, tax law provides numerous incentives for home ownership by allowing the deduction for mortgage interest and real estate tax. The Tax Cuts and Jobs Act modifies these popular tax benefits as explained below.

Mortgage Interest

Home mortgage interest is generally deductible if it is paid or accrued on acquisition indebtedness or home equity indebtedness…

March 5 , 2018 | Posted by Brian Stautberg |

Estate, Gift, and GST Tax Exclusions Increased

The Tax Cuts and Jobs Act doubles the basic exclusion amount for federal estate and gift taxes and the exemption amount for the generation-skipping transfer (GST) tax. For the estates of decedents dying and gifts made after 2017 and before 2026, the amount increases from $5 million to $10 million, as adjusted for inflation.

Estate…

March 1 , 2018 | Posted by Brian Stautberg |

New Favorable Tax Depreciation Provisions

The Tax Cuts and Jobs Act modifies provisions related to depreciation and expensing of fixed assets. These changes extend and modify the additional first-year depreciation deduction through 2026 (through 2027 for longer production period property and certain aircraft), increase the Code Sec. 179 dollar and investment limitations, expand the definition of Code Sec. 179 property,…

February 27 , 2018 | Posted by Brian Stautberg |

Impact of Tax Cut and Jobs Act on Families

The Tax Cuts and Jobs Act made sweeping tax changes that impact virtually all taxpayers. For individual taxpayers and their families, changes include a decrease in the tax rates, repeal of the personal exemption, increase in the standard deduction, modification to itemized deductions, and doubling of the child tax credit.

Under the Tax Cuts and…

February 22 , 2018 | Posted by Brian Stautberg |

Corporate Tax Changes

The recently enacted Tax Cuts and Jobs Act calls for a 21-percent corporate tax rate beginning in 2018. The maximum corporate tax rate previously topped out at 35 percent. In addition, the 80-percent and 70-percent dividends-received deductions under previous law were reduced to 65 percent and 50 percent, respectively. The Tax Cuts and Jobs Act…

February 19 , 2018 | Posted by Brian Stautberg |

Favorable New Tax Rules for Pass-Throughs

Prior to the recently enacted Tax Cuts and Jobs Act, owners of partnerships, S corporations, and sole proprietorships – “pass-through” entities – paid tax at the individual rates, with the highest rate at 39.6 percent for 2017 and prior. The highest rate is reduced to 37 percent under the Tax Cuts and Jobs Act. The…