Will I benefit from the Tax Cuts and Jobs Act? Good question! The sweeping tax reform that was passed into legislation last year became effective January 1, 2018. Among the changes made by the law, that impacts virtually every taxpayer, were the repeal of the personal exemption, increase in the standard deduction, modification to itemized deductions and doubling of the child tax credit.
Determining whether you are a real estate professional or a passive investor can have significant tax implications.
Real estate investment can often lead to significant tax savings due to depreciation and other deductions that are immediately incurred. Individuals classified as real estate professionals can use losses from real estate activities to offset sources of income such as wages, active business income, or portfolio income. However, these losses are treated as passive for individuals who cannot achieve real estate professional status. These passive losses would generally only be able to be used to offset other passive income. They could also be carried forward to future years if they are not able to be used currently.
The largest global study on occupational fraud, “2018 Report to the Nations on Occupational Fraud and Abuse,” was released last week by the Association of Certified Fraud Examiners (“ACFE”). It outlines major fraud concerns for businesses worldwide, and particularly small businesses.
The phrase “net operating loss” may bring about feelings of despair to a business person. It may be the case that a business actually lost money in a given year and the owner reported a negative taxable income number on his/her tax return. Net operating losses (NOLs) for tax purposes do not always mean negative business results. In some cases, NOLs arise from accelerated tax deductions through depreciation, resulting in positive cash flow for the business, but a negative bottom line for tax purposes. Regardless of how an NOL was generated, the rules governing their use are changing as a result of the TCJA. We explore a few of the issues at play in this article:
As consumers, we are constantly tasked with assigning value to different products/services we encounter on a daily basis. Generally, we have a good sense of how valuable an item is and can make a purchasing decision without much effort. Think about going grocery shopping, we quickly assign value to the food on the shelves and make a decision to put the item in our cart, or not.