Berdon Blogs

TAX TALK: Individual Tax Calendar: Important Deadlines for the Remainder of 2018

Posted by Michael Eagan, J.D., LL.M. on Apr 23, 2018 9:30:00 AM

With April 17 behind us, to help you make sure you don’t miss any important 2018 deadlines, here’s a look at when some key tax-related forms, payments, and other actions are due. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you.

Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.

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TAX TALK: How Long Should You Retain your Tax Records?

Posted by Michael Eagan, J.D., LL.M. on Apr 16, 2018 9:17:00 AM

You should keep your tax records for at least three years from the date you file your tax return. The Internal Revenue Service (IRS) generally has three years to assess additional tax liabilities and you generally have three years to amend a prior tax return. However, since under some circumstances the IRS has up to six years to audit your returns, you should consider keeping your records for six years from the date you filed your tax return.

What to Keep Longer

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TAX TALK: Key Q2 Tax Calendar Deadlines for Businesses and Other Employers

Posted by Michael Eagan, J.D., LL.M. on Apr 3, 2018 9:20:00 AM

Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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TAX TALK: Casualty Losses Provide a 2017 Deduction, but Rules Tighten for 2018

Posted by Michael Eagan, J.D., LL.M. on Mar 19, 2018 9:09:45 AM

If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your 2017 federal income tax return. For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends this deduction except for losses due to an event officially declared a disaster by the President.

What is a casualty? It’s a sudden, unexpected or unusual event, such as a natural disaster (hurricane, tornado, flood, earthquake, etc.), fire, accident, theft or vandalism. A casualty loss doesn’t include losses from normal wear and tear or progressive deterioration from age or termite damage.

Here are some things you should know about deducting casualty losses on your 2017 return:

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Topics: TAX TALK

TAX TALK: Size of Your Charitable Deductions Depends on Many Factors

Posted by Michael Eagan, J.D., LL.M. on Mar 12, 2018 9:20:00 AM

Whether you’re claiming charitable deductions on your 2017 return or planning your donations for 2018, be sure you know how much you’re allowed to deduct. Your deduction depends on more than just the actual amount you donate.

Type of Gift

One of the biggest factors affecting your deduction is what you give:

Cash. You may deduct 100% gifts made by check, credit card, or payroll deduction.

Ordinary-income property. For stocks and bonds held one year or less, inventory, and property subject to depreciation recapture, you generally may deduct only the lesser of fair market value or your tax basis.

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Topics: TAX TALK

TAX TALK: Sec. 179 Expensing Provides Small Businesses with 2017 Tax Savings and More

Posted by Michael Eagan, J.D., LL.M. on Mar 5, 2018 9:58:56 AM

If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, because the Tax Cuts and Jobs Act (TCJA) significantly enhances it beginning in 2018.

2017 Sec. 179 benefits

Sec. 179 expensing allows eligible taxpayers to deduct the entire cost of qualifying new or used depreciable property and most software in Year 1, subject to various limitations. For tax years that began in 2017, the maximum Sec. 179 deduction is $510,000. The maximum deduction is phased out dollar for dollar to the extent the cost of eligible property placed in service during the tax year exceeds the phaseout threshold of $2.03 million.

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TAX TALK: Tax Deduction for Moving Costs: 2017 vs. 2018

Posted by Michael Eagan, J.D., LL.M. on Feb 26, 2018 9:19:00 AM

If you moved for work-related reasons in 2017, you might be able to deduct some of the costs on your 2017 return — even if you don’t itemize deductions. Or, if your employer reimbursed you for moving expenses, that reimbursement might be excludable from your income. The bad news is that, if you move in 2018, the costs likely won’t be deductible, and any employer reimbursements will probably be included in your taxable income.

Suspension for 2018–2025

The Tax Cuts and Jobs Act (TCJA), signed into law this past December, suspends the moving expense deduction for the same period as when lower individual income tax rates generally apply: 2018 through 2025. For this period it also suspends the exclusion from income of qualified employer reimbursements of moving expenses.

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Topics: TAX TALK

TAX TALK: 2017 Tax Breaks for Families with College Students

Posted by Michael Eagan, J.D., LL.M. on Feb 19, 2018 10:49:55 AM

Whether you had a child in college or graduate school last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return. One such break that had expired December 31, 2016, was just extended under the recently passed Bipartisan Budget Act of 2018: the tuition and fees deduction.

But a couple of tax credits are also available. Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed.

Higher Education Breaks 101

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Topics: TAX TALK

TAX TALK: TCJA Temporarily Lowers Medical Expense Deduction Threshold

Posted by Michael Eagan, J.D., LL.M. on Feb 12, 2018 9:14:00 AM

With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced the threshold.

Eligible Expenses

Medical expenses may be deductible if they’re “qualified.” Qualified medical expenses involve the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Examples include payments to physicians, dentists and other medical practitioners, as well as equipment, supplies, diagnostic devices, and prescription drugs.

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TAX TALK: Two Small Business Tax Credits May Reduce Your 2017 and 2018 Tax Bills

Posted by Michael Eagan, J.D., LL.M. on Feb 5, 2018 11:44:00 AM

Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. Two still-available tax credits are especially for small businesses that provide certain employee benefits.

1. Credit for Paying Health Care Coverage Premiums

The Affordable Care Act (ACA) offers a credit to certain small employers that provide employees with health coverage. Despite various congressional attempts to repeal the ACA in 2017, nearly all of its provisions remain intact, including this potentially valuable tax credit.

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Topics: TAX TALK

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