IRS Issues Guidance

For Deducting Home Equity Loan Interest Under The New Tax Law

Word spread quickly in the days leading up to tax reform: The home mortgage interest deduction was on the chopping block. Ultimately, the deduction was spared, but the amount of home mortgage allowable for purposes of the deduction was limited to $750,000 for new mortgages. Existing mortgages were grandfathered, but that didn't appear to be the case for home equity debt, raising some questions for taxpayers. Today, the Internal Revenue Service (IRS) finally issued guidance concerning deducting interest paid on home equity loans.

Read More: https://www.forbes.com/sites/kellyphillipserb/2018/02/22/irs-issues-guidance-for-deducting-home-equity-loan-interest-under-the-new-tax-law/#594c8a7b6453

Questions: http://www.rehcpas.com/

Some New Information

Hello everyone, I hope you are doing well. The passage of the The Tax Cut and Jobs Act of 2017 (TCJA) has come with some very interesting changes for 2018. One of the least publicized changes has been the elimination of the 50% deduction for Meals & Entertainment Expenses.

Prior to 2018 employers were able to deduct 50% of the expenses for taking a client out for a meal and/or a sporting event. For 2018 this will no longer be deductible. We are still waiting on additional guidance from the IRS on the "Meals" portion, but for now it looks as if this is no longer deductible.

Meal expenses incurred while traveling on business are still 50% deductible.

Meals provided to an employee for the convenience of the employer on the employer's business premises are 50% deductible. These meals should be available to all employees to be deductible.

We recommend establishing two accounts in your accounting software to track "Meals and Entertainment" and "Deductible Meals".

This is a big change for many business owners. If you have any questions or need additional guidance please contact me.

Thank you!

Raymond E Halstead, CPA

REH CPA, PLLC

www.rehcpas.com/

704-662-8249

IRS Offers in Compromise - A Case Study

In situations where a taxpayer has a greater tax liability than funds, there are several options available. The taxpayer can, of course, borrow the money from a third party to satisfy the debt to the IRS, or even arrange for an installment payment agreement with the IRS. When the debt is so substantial with respect to a taxpayer’s overall financial position that he may not be able to satisfy the debt in full, or there is a real risk of financial ruination, the taxpayer can seek to compromise that debt, resulting in payment of a lower amount than the total due.

Read More: https://www.cpajournal.com/2018/02/07/irs-offers-compromise/

Questions: http://www.rehcpas.com/