The IRS has passed final regulations aimed at preventing tax payers from “getting around” SALT deduction limits. A tax deduction will lower the amount of a person’s income that is subject to taxes in the first place. This is different from a tax credit, which reduces the overall tax bill owed to the Internal Revenue Service (“IRS”) for the tax year. Prior to the Tax Cuts and Jobs Act (“TCJA”), the only limit on what a single taxpayer could deduct was for individuals with an adjusted gross income of over $150,000. Currently, all taxpayers, no matter the level of income, can only deduct up to $10,000 of total SALT taxes (including property taxes). SALT deductions can only be claimed if a ta

While scientific progress is considered a universal good by most people, advances in automation have made some employees concerned over their labor security in certain sectors of the American economy. While we hear about this mostly in regard to industries like transportation and basic services, advances in automation are poised to have profound effects on all areas of the economy, and law is no exception. Here are just two ways that technology could change the landscape of tax law sooner than you think. Firstly, there is tax outsourcing. Digital platforms make it easier to collaborate with contractors — including, for example, the growing number of knowledge workers in India. Firms that mas

The costs of education are rapidly increasing, even for elementary and secondary schools. While the 529 plan is available for anyone, even yourself, it is most commonly set up for younger individuals. Investing and saving for your children’s or grandchildren’s education is becoming more and more of a necessity. Section 529 of the Internal Revenue Code (“IRC”) provides several benefits for creating and investing in a 529 plan. A 529 plan is operated by a state or educational institution providing several federal and potential state tax benefits. The main advantage of investing in a 529 plan is that contributed earnings will not be subject to federal income tax. This means that the money w

The IRS has issued final rules in regards to charitable contribution deductions under Sec. 170(c). The Tax Cuts and Jobs Act, while virtually reducing taxes owed across the board for all Americans, did establish a $10,000 cap on SALT (State and Local Tax) deductions, the impact of which is primarily felt by those living in states with higher tax rates or who own more expensive property than the average American. Some states responded with this by enacting their own programs that permit residents to make contributions to charity or state/local government organizations in exchange for state and local tax credits. Such programs are designed to allow taxpayers to circumvent the $10,000 SALT dedu

Freelancing certainly has its perks. Being able to the work you want, when you want is no doubt an appealing prospect for many of us clocking in and clocking out week after week. However, while you may be able to wake up at noon more often than your 9-5 friends, you most likely won’t be doing so come April. Freelance work comes with the additional burden of having to file all your one-man business income, expenses, and everything in between, all on your own. Thankfully, with a bit of tax knowledge and some initiative, tax filing for freelancers does not need to be as daunting a task as it might otherwise be. While most individual freelancers may assume that they are locked into the sole prop

The Senate Finance Committee has introduced a new version of this act, being the most comprehensive retirement reform proposal in nearly a decade. The Act contains many measures popular among retirement industry professionals, analysts, and other stakeholders. For example, RESA allows for an increase in access to lifetime income products in defined contribution plans and allows small employers/business owners to come together to facilitate larger, more cost-efficient, collective retirement plans. The House version was just amended recently with additional provisions to create a new measure, the Setting Every Community Up for Retirement Enhancement Act of 2019 or “SECURE Act.” The SECURE Ac

In May, 2019, the IRS issued inflation-adjusted vehicle depreciation limits for passenger automobiles placed into service after December 31, 2018, as well as the amounts of income inclusion for lease holders, or lessees, of passenger automobiles first leased after December 31, 2018 (Rev. Proc. 2019-26). The IRS has included trucks and vans under the term “passenger automobiles” for purposes of this revenue procedure. The inflation adjustment, as required by 280F(d)(7), applies the automobile component of the chained consumer price index for all urban consumers (“C-CPI-U”). The C-CPI-U has replaced the prior consumer price index when the new tax law, the Tax Cuts and Jobs Act, went into effe