As we enter the thick of 2018, 2017 is but a dream in our rear view mirror. Accordingly, this month we turn attention to the Trump Tax changes or ‘Tax Cuts and Jobs Act’ (TCJA). (To download the May eLetter, click here).
A Tax Cut or a Tax Increase?
One of the big controversies about the TJCA is whether it is a tax cut, a tax increase, or something else entirely. As accountants, we can tell you definitively: it depends. It depends on where you live, whether you own a business, how much you make, and a range of other factors. Among them is whether you are divorced or not, and if you are paying (or receiving) alimony. That’s changed. The payer of alimony will no longer get a tax deduction, as that will go to the payee. That may be advantageous to one party but not to the other, but since most often it is the high income person who pays, it is effectively a tax increase on most “couples,” if you can call divorced couples, “couples,” so to speak. Another change has to do with business entertainment and meal deductions. This one is pretty much a tax increase on businesses as the deductions go away. Those are just two complexities discussed; the best next step is to reach out for a consultation on YOU and YOUR TAXES as it all very much depends whether we can find workarounds to minimize the tax bite (or maximize the tax benefit) of the TCJA. But read the newsletter as it also discusses potential changes to the value of bonds as interest rates rise.
About Safe Harbor LLP – a Professional CPA Firm in San Francisco
Safe Harbor LLP is a CPA firm that specializes in accounting and tax services for individuals and businesses throughout the San Francisco Bay Area and greater California. Safe Harbor CPAs helps both individuals and businesses with tax preparation, IRS audit defense, and audited financial statements. The firm prides itself on friendly yet professional service and utilizes state-of-the-art Internet technology to provide quality customer service. Its goal: to be the best CPA firm in San Francisco.
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