Now that the Tax Cuts and Jobs Act (TCJA) has passed, everyone wants to know how much they’ll save. President Trump and Republican members of Congress say the bill will bring $3.2 trillion in tax cuts. Here’s a comparison of how tax results for a typical family of four might be affected by the tax law  Continue Reading »

The most significant tax legislation in decades has passed. The new tax reform law is commonly referred to as the “Tax Cuts and Jobs Act” (TCJA). Now Maine businesses and individuals are trying to digest the details and evaluate how the changes will impact their tax situation. Fortunately, your tax advisors can help you figure things out.  Continue Reading »

Transupport, Inc. v. Commissioner, 2016 Tax Ct. Memo LEXIS 214 (Nov. 23, 2016) Expert independence was front and center as an issue in the Exelon tax case. Now comes, a reasonable compensation case in which the Tax Court zeroed in on the same point. The court rebuked an experienced compensation analyst for what it perceived  Continue Reading »

When individual taxpayers claim deductions for bad debt losses, the IRS is always skeptical. Why? Losses from purported loan transactions often fail to meet the tax-law requirements for bad debt loss deductions. For example, a taxpayer might try to write off a capital contribution to a business entity that underperformed. Or a taxpayer might have  Continue Reading »

After five years of being stuck at $14,000, the annual gift tax exclusion will be $15,000 per recipient for 2018 — its highest point ever. According to the announcement by the IRS, it’s rising due to inflation. Here’s what the recent increase in the exclusion may mean for you, including how annual gift-giving can lower  Continue Reading »

You can currently make extra “catch-up” contributions to certain types of tax-favored retirement accounts if you are age 50 or over. Over time, these contributions can make a significant difference in your retirement-age wealth. What about tax reform? After President Trump and other lawmakers stated that they wouldn’t tinker with retirement plan contribution tax breaks,  Continue Reading »

Some Maine-based small business may be going through some hard times. Borrowing from payroll taxes that have been withheld from employee paychecks might seem like an easy way to get cash temporarily. Business owners might think they’ll just borrow enough to pay urgent expenses and pay it right back later. That can, however, be a  Continue Reading »

There’s still time to take steps to significantly reduce your Maine business’s 2017 income tax bill and possibly lay the groundwork for tax savings in future years. Here are five year-end tax-saving ideas to consider, along with proposed tax reforms that might affect your tax planning strategies. 1. Juggle Income and Deductible Expenditures If you  Continue Reading »

November is open enrollment season at most Maine offices. Have you signed up for employer-provided benefits for 2018? Because it’s uncertain how tax reform legislation that could be enacted soon will change the tax rules starting in 2018, benefits enrollment is a little trickier this year. Some employer-provided benefits might be repealed. But there are  Continue Reading »

You may be thinking about making some charitable donations as the year comes to an end. Here’s a rundown of the potential tax breaks for your generosity. Itemized Deductions While you can claim write-offs for contributions of cash and other items donated to charitable organizations, such as United Way and Goodwill, what you might not  Continue Reading »