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/

Firm Announcment

Hello everyone! I hope you are doing well and that your year has had a great start.

I wanted to give you a quick update on some positive changes at our firm.

First, I would like to announce that Andrew McMillan, CPA has acquired an equity interest in REH CPA, PLLC and is now a partner in the firm. Andrew's title going forward will be Tax Partner. Andrew will be managing all aspects of individual and business taxation.

Andrew's work ethic and commitment to our firm's values has already made a huge impact over the past year and a half, and I am excited to see what the future holds as we go forward.

Second, I would like to announce that Anita Surphlis, CPA has been promoted to Manager of Accounting and Payroll Services. Anita brings a wealth of experience and knowledge to this role and will enable the firm to increase its focus on our core services.

Last, but not least, Patricia Nass, CPA has joined the firm as a Tax Accountant. Patricia recently relocated from Ridge, NY where she was a staff accountant at a local CPA firm. Patricia is well versed in accounting, payroll and tax issues as it relates to individual and small business. We are very lucky and excited to have Patricia on our team.

Going forward the firm will be structured into two main areas of focus:

•           Business and Individual Tax Services managed by Andrew McMillan, CPA

•           Accounting and Payroll Services managed by Anita Surphlis, CPA

By breaking these into two separate business units with a manger that is responsible, we are able to provide a greater focus on customer service and quality.

Of course, I am still intimately and actively involved in overseeing all areas and functions.

If you have any questions or concerns please feel free to contact me.

Thank you!

Raymond E Halstead, CPA

REH CPA, PLLC

rehcpas.com

704-662-8249

223 Williamson Rd, Suite 204

Mooresville, NC 28117

Tax Planning Tips for Cutting 2017 Income Taxes - Tax Reform Edition

There’s still time left for you or your clients to cut their 2017 tax bills.

The conventional tax wisdom at the end of the year is to pull in deductions to offset current tax liability and push off income to postpone tax payment. This takes on added significance in 2017 with enactment of the new tax reform law, the Tax Cuts and Jobs Act (TCJA). Because the bill, just signed into law by President Trump on Friday, December 22, cuts individual tax rates and eliminates or scales back most itemized deductions in 2018, many taxpayers have even more tax incentive to follow the traditional pull-and-push strategy.

Read More: http://www.cpapracticeadvisor.com/news/12388257/tax-planning-tips-for-cutting-2017-income-taxes-tax-reform-edition

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

IRS issues 2018 standard mileage rates

The optional standard mileage rates for business use of a vehicle will increase slightly in 2018, after decreasing in the two previous years, the IRS announced Thursday (Notice 2018-3). For business use of a car, van, pickup truck, or panel truck, the rate for 2018 will be 54.5 cents per mile, up from 53.5 cents per mile in 2017. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

Read More: https://www.journalofaccountancy.com/news/2017/dec/2018-irs-standard-mileage-rates-201718061.html

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

House bill features many business tax changes

At an estimated projected revenue cost over 10 years of $1.46 trillion, the reduction of the corporate income tax rate in the Tax Cuts and Jobs Act, H.R. 1, is the bill's largest single item by forecast negative effect to the federal budget, according to the Joint Committee on Taxation's estimate (JCX-47-17). But the bill contains many other provisions that would affect a large number of businesses, if enacted.

Read More: https://www.journalofaccountancy.com/news/2017/nov/house-bill-features-business-tax-changes-201717819.html

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

Details of tax reform legislation revealed

The House Ways and Means Committee released draft tax reform legislation on Thursday. The Tax Cuts and Jobs Act, H.R. 1, incorporates many of the provisions listed in the Republicans’ September tax reform framework while providing new details. Budget legislation passed in October would allow for the tax reform bill to cut federal government revenue by up to $1.5 trillion over the next 10 years and still be enacted under the Senate’s budget reconciliation rules, which would require only 51 votes in the Senate for passage. The Joint Committee on Taxation issued an estimate of the revenue effects of the bill on Thursday showing a net total revenue loss of $1.487 trillion over 10 years.

Read More: https://www.journalofaccountancy.com/news/2017/nov/tax-reform-legislation-details-201717798.html

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