Insights

The Tax Cuts and Jobs Act (the Act) cut tax rates for both individuals and businesses, effective for tax years after December 31, 2017. As part of the package, some deductions have been eliminated and certain perceived loopholes closed. Miscellaneous itemized deductions for individuals have been repealed, which includes unreimbursed employee expenses. If the employer…

The president signed a “continuing resolution” on January 22, delaying three health-related taxes: the medical device excise tax, the Cadillac tax and the health insurance tax. Medical Device Tax Just days before medical device companies were set to make their first payment to the IRS, the excise tax relief was extended another two years. While…

What are cryptocurrencies? The news is teeming with excitement about cryptocurrencies, whether it be Bitcoin, Ethereum or one of the many other types of cryptocurrency. With the increasing popularity of this unregulated currency, it has not only garnered attention from the public but also the government, and thus the IRS. Even though cryptocurrencies are unregulated,…

Determining the correct research and development costs (R&D) can be a complex process for both taxpayers and examiners. In an effort to ease the burden, the IRS issued Directive LB&I-04-0917-005 to all IRS Large Business and International (LB&I) employees, giving new guidance that aims to provide a more efficient means of approving Qualified Research Expenses…

On January 2, the President declared a major natural disaster for those areas affected by the Thomas Fire. Montecito’s recent mudslides brought another natural disaster to an already-scarred community. If you or someone you know was directly affected by these damaging events, please read the following tips on how taxpayers may be able to seek…

President Trump signed the sweeping 2018 tax reform bill into law last Friday, with most provisions taking effect on January 1, 2018. The following article identifies key changes in the new legislation that will affect both individual and corporate taxes for 2018 and beyond. In general, the changes to individual provisions expire at the end…

A new year brings new changes. The Internal Revenue Service recently announced updated pension plan contribution limitations for the 2018 tax year. The Highlights The new limit for elective-deferral contributions to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has increased from $18,000 to $18,500. For those ages 50 and older…