Current Buzz

November 15, 2018

Qualified Opportunity Funds...an Opportunity for Tax Savings

By Abe Livchitz, CPA, Senior Tax Manager & Tingting Zhang, CPA, Tax Senior

Tax deferral, gain exclusions, tax free appreciation. These seven words are very exciting as they offer potentially significant tax savings for our clients. All three of these benefits are possible by investing in a “Qualified Opportunity Fund” (QOF). The creation of these funds and their related tax benefits were authorized by the Tax Cuts and Jobs Act (TCJA) passed by Congress in December 2017. The Internal Revenue Service recently issued guidance to clarify questions unanswered by the TCJA, so QOFs should gain in popularity in the coming months. However, additional guidance is expected in the future, as many questions remain unanswered. (more…)

Categories: Fall 2018, Tax Reform, Updates & Alerts

Tags: Gain exclusions, Qualified Opportunity Fund, Tax deferral, Tax free appreciation,

August 16, 2018

Charitable Giving in a Post-TCJA World - What You Need to Know in the Wake of the New Tax Law

The Tax Cuts and Jobs Act (TCJA) represents the biggest overhaul of the tax code in more than three decades. Tax experts are still sorting out all the intricacies. But this much is clear: The TCJA will have a significant impact on estate planning and related aspects, such as charitable giving.

Even though the TCJA reduces tax incentives for making charitable donations for some people, it encourages contributions for others. Let’s take a closer look at the new tax landscape and how it relates to charitable giving. (more…)

Categories: Family Wealth & Individual Tax Planning, Tax Reform

Tags: Brunching deductions, Charitable giving, charitable remainder trust, Donor-advised funds, Tax Cuts and Jobs Act,

By ASL Guest

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August 15, 2018

Payroll Withholding Confusion – Are You Withholding Enough from Your Paycheck?

By Sheila Foley, Accounting Consultant

The Tax Cuts and Jobs Act was enacted in late December, 2017 and it significantly altered the tax laws applicable to individual taxpayers. The significant changes included: reduction in tax rates and modification of brackets, increase in the standard deduction, repeal of personal exemptions, limitation on deductions for state and local taxes, mortgage interest, home equity loan interest and elimination of deduction for miscellaneous itemized deductions. (more…)

Categories: Tax Reform, The Musings of our Authors, Updates & Alerts

Tags: Payroll withholding, Tax Cuts and Jobs Act, Taxpayers, Withholding Calculator,

August 8, 2018

The New Form 1040 - Navigating the Postcard

In this podcast, Chris Madrid from our Family Wealth and Individual Tax Planning Group discusses the recently released draft of the new Form 1040 and the changes taxpayer’s should look out for.

Categories: Family Wealth & Individual Tax Planning, Tax Reform

Tags: Chris Madrid, Family Wealth, Form 1040, Podcast, Taxpayers,

August 2, 2018

Tax Act Effect on Valuation

By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services

With the signing of the Tax Cuts and Jobs Act (TCJA) in December 2017, valuation analysts have been tasked with incorporating the changes to the tax law into their analysis. Changes, such as the lowering of corporate tax rates and restrictions on interest deductibility, must be factored into valuation analysis to capture the effects of the TCJA on company value. When valuing a US company, valuation analysts must now consider the following: (more…)

Categories: Summer 2018, Tax Reform, Valuation Services

Tags: Tax Act, TCJA, valuation,

July 19, 2018

New Tax Law Still Offers Incentives for Use of Tax Havens

The Tax Cuts and Jobs Act (TCJA), passed in December of 2017, was aimed at dissuading U.S. companies from moving profits offshore. However, it may make shifting earnings to tax havens more beneficial for some companies.

Before the TCJA, companies that offloaded profits linked to sales, research or production were taxed at a 35% rate when the profits were brought to the United States. The TCJA moved the U.S. to a “territorial” system, which was meant to reduce or eliminate the incentive for companies to invert to avoid U.S. taxes on foreign income. (more…)

Categories: Tax Reform

Tags: Corporate Tax Rate, Domestic tax, Tax Cuts and Jobs Act, Territorial tax system,

June 7, 2018

Tax Cuts and Jobs Act Supercharges Exemption Portability

The Tax Cuts and Jobs Act (TCJA) completely rewrites sections of the tax code for individuals and businesses. Under the TCJA, the federal gift and estate tax exemption doubles from $5 million to $10 million, indexed for inflation to $11.18 million in 2018.

Somewhat lost in the clamor is the fact that the new law preserves the “portability” provision for married couples. Portability allows your estate to elect to permit your surviving spouse to use any of your available estate tax exemption that is unused at your death. (more…)

Categories: Family Wealth & Individual Tax Planning, Tax Reform

Tags: Gift and estate taxes, Portability, Tax Relief Act 2010, TCJA,

April 12, 2018

IRS to Deny Certain Changes to Foreign Corporations’ Accounting Periods

On February 13, 2018, the Treasury Department and the Internal Revenue Service issued Rev. Proc. 2018-17, which provides modifications to the procedures for changing the accounting period of foreign corporations owned by U.S. shareholders that are subject to the transition tax under the Tax Cuts and Jobs Act. Rev. Proc. 2018-17 basically disallows the accounting period change if such change could result in the avoidance, reduction, or delay of the transition tax. (more…)

Categories: International Business Issues, Tax Reform

Tags: accounting periods, deferred foreign income corporation, foreign corporations, Tax Cuts and Jobs Act,

By Kay Filler

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April 11, 2018

Stranded Tax Effects from New Tax Act

The Tax Cuts and Jobs Act (the Act), enacted on December 22, 2017, creates some interesting consequences when applying US GAAP principles for income tax accounting related to deferred taxes. FASB guidance requires that deferred income tax assets and liabilities be remeasured as a result of changes in tax laws or tax rates. As commonly known by now, the Act reduced the maximum tax rate for corporations to 21% from 35%. (more…)

Categories: Tax Reform, The Musings of our Authors, Updates & Alerts

Tags: Accumulated Other Comprehensive Income, AOCI, stranded tax effects, Tax Cuts and Jobs Act,