IRS Okays Home Equity Deductions – June 2018

As previously reported in the April 2018 edition of the CPA Client Bulletin, the Tax Cuts and Jobs Act of 2017 affected the tax deduction for interest paid on home equity debt as of 2018. Under prior law, you could deduct interest on up to $100,000 of home equity debt, no matter how you used the money. The old rule is scheduled to return in 2026.

What’s Inside

  • IRS okays home equity deductions
  • Buck market volatility with a retirement bucket plan
  • Coping with summer vacations at your small business
  • Tax calendar
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The New Tax Law Will Change Divorce Tactics – May 2018

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Next year, the rules will change, and the roles will be reversed.

What’s Inside

  • The new tax law will change divorce tactics
  • Stretching for yield… carefully
  • No tax deductions for business entertaining
  • Tax calendar
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Patience is Prudent – April 2018

The Tax Cuts and Jobs Act (TCJA) of 2017, passed at year end, has been called the most extensive tax legislation in more than 30 years. It’s certainly far reaching, covering individual income taxes, business income taxes, and estate taxes. The new law has many tax saving opportunities as well as possible pitfalls.

What’s Inside

  • Patience is prudent
  • Know your true tax rate
  • Rethinking retirement contributions
  • Regard Roth conversions carefully
  • Are state and local taxes reasons for relocaion
  • Positive prognosis for medical deductions
  • Home equity hassle
  • New tax deduction for pass-through entities
  • Tax Calendar
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Weighing the risks of bond funds – March 2018

Most portfolio allocations call for a mix of stocks (equities) and bonds (fixed income). The underlying theory is that stocks may deliver substantial results over the long term, whereas bonds contribute interest income and lower volatility.

What’s Inside

  • Weighing the risks of bond funds
  • Two five-year tests for Roth IRA’s
  • How small companies can address harassment issues
  • Tax Calendar
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County Property Tax Prepayment Option

So far, following counties are known to allow prepayments:

Cook, DuPage, Grundy, Kane, LaSalle and Will.

Cook first installment only; can be paid online – bills already available online. Also by mail (postmarked by 12/31/2017) or at any Chase Bank branch in Illinois.

DuPage and Grundy can be paid in person or by mail (postmarked by 12/31/2017)

Grundy up to 100% of amount paid in 2017 taxes for 2016 taxes.
DuPage up to 105% of amount paid in 2017 for 2016 taxes.

Kane can be paid in person or by mail, but it must be RECEIVED by 4:00 PM on 12/29/2017 even if by mail.

Kane up to 100% of amount paid in 2017 taxes for 2016 taxes rounded down to the nearest $100. Also must use the Application for Kane County Property Tax Prepayment Program form available online.

LaSalle and Will county in person only by 12/29/2017. Up to 100% of amount paid in 2017 for 2016 taxes.

Kendall County is not allowing prepayment.

Pros and Cons of Asset Management Fees – December 2017

A transition is underway within investment firms. Increasingly, the people you hire to manage your money don’t refer to themselves as brokers or stockbrokers. Instead, they’re now financial advisers, financial planners, or financial consultants.

What’s Inside

  • Pros and Cons of Asset Management Fees
  • Win With a Roth IRA Reversal
  • Year-End Thank You Gifts from Business Owners
  • Tax Calendar
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