More states enact SALT workarounds

New York and Georgia have now added to the growing number states enacting measures to work around the cap on state and local tax deductions. The 2017 Tax Cuts and Jobs Act placed a $10,000 cap on the deduction, which was a blow to residents in high tax states. Since TCJA was enacted, various states […]

Educate yourself about the revised tax benefits for higher education

Attending college is one of the biggest investments that parents and students ever make. If you or your child (or grandchild) attends (or plans to attend) an institution of higher learning, you may be eligible for tax breaks to help foot the bill. The recently enacted Consolidated Appropriations Act made some changes to the tax […]

What’s in the Covid relief bill: PPP Provisions

The latest Covid-19 relief bill, the Consolidated Appropriations Act of 2021, provides more funding for new Paycheck Protection Program loans, simplifies the forgiveness application process and allows tax deductibility for business expenses paid with forgiven PPP loans, among other provisions. Included in the $900 billion Covid relief bill is $325 billion in aid for small […]

IRS allows SALT cap workaround for pass-throughs

When the Tax Cuts and Jobs Act was enacted in 2017, the $10,000 cap on state and local taxes deductions left residents in high tax states out in the cold. For example, many New Yorkers and Californians know it is not unusual for state income tax amounts to approach the cap from payroll deductions alone. […]

Why donor-advised funds are worth a second look

It goes without saying that 2020 has been a year unlike any other, which makes relying on your trusted business and tax adviser for year-end tax planning even more important. We have offered 10 year-end tax strategies that you can take advantage of now, but there is one in particular that we want to discuss […]

Year-end tax planning goes to the movies

Year-end tax planning is a bit more complex this year as many of our clients received loans through the Paycheck Protection Program. While the loan proceeds are not taxable, word is still out whether the business expenses paid for with the loan will be deductible. Therefore, we are preparing tax projections with two scenarios in […]

Some contributions eligible for state tax credit and federal deduction

Many states offer various tax credits for donating to certain qualified charitable organizations, but it has been unclear how to treat those donations for federal tax purposes. The IRS in August issued final regulations that try to make sure people are not double dipping, that is, getting a tax credit and a tax deduction for […]

Approach conservation easements with caution

Donating large tracts of land to a charitable organization in exchange for a sizable tax deduction sounds like a win-win, but is it? We are hearing of more and more partnerships or LLCs becoming involved in syndicated conservation easement transactions, in which the partnership or LLC purchases land for the purpose of donating the property […]

A nonworking spouse can still have an IRA

It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” […]

CARES Act fixes legislative glitch to Qualified Improvement Property

A legislative glitch in the Tax Cuts and Jobs Act has been corrected through recent coronavirus relief measures. The Coronavirus Aid, Recovery and Economic Security (CARES) Act contains a technical correction to the portion of the TCJA passed in 2017 requiring Qualified Improvement Property (QIP) to be depreciated over 39 years, rendering property ineligible for […]