Commercial buildings and improvements usually are depreciated over 39 years, meaning you can deduct a share of the cost every year over the depreciation period. (Land is not depreciable.) However, special tax breaks that allow deductions to be taken more quickly are available for specific real estate investments. Some of these were enhanced by the … [Read more…]

Have you been receiving letters from your favorite charities lately? For many Americans letters have been appearing in their mailbox in recent weeks acknowledging their 2018 year-end donations. However, what happens if you have not received such a letter? Will you still be able to claim an itemized deduction for the gift on your 2018 … [Read more…]

While the Tax Cuts and Jobs Act (TCJA) usually reduced individual tax rates for 2018 through 2025, some taxpayers might see their taxes go up due to reductions or eliminations of certain tax breaks—and, in some cases, due to their filing status. However, some might see additional tax savings due to their filing status. Unmarried … [Read more…]

The coming of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s usually too late to take action to reduce 2018 taxes. Business owners might, therefore, want to shift their focus to assessing whether they will owe taxes or get a refund when filing their returns this … [Read more…]

Retirement plan contribution thresholds are indexed for inflation, and many have gone up for 2019 which give you opportunities to grow your retirement savings: • Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans: $19,000 (up from $18,500) • Contributions to defined contribution plans: $56,000 (up from $55,000) • Contributions to SIMPLEs: $13,000 (up from … [Read more…]

While most of the provisions in the Tax Cuts and Jobs Act (TCJA) came into effect in 2018 and either apply through 2025 or are permanent, there are two significant changes under the act for 2019. Here is a closer look. 1. Medical expense deduction thresholdClaiming whatsoever tax breaks related to health care that you … [Read more…]

Did you make investments outside of tax-advantaged retirement plans? If so, you may still have time to shrink your 2018 tax bill by selling some investments—you just need to select which investments you sell carefully. Try balancing gains and losses If you have sold investments at a gain this year, consider selling some losing investments … [Read more…]

With the beginning of 2019 coming up, here is a quick list of financial and tax to-dos you should address before 2018 ends: Check your FSA balance. If you have a Flexible Spending Account (FSA) for health care expenses, you need to incur qualifying expenses by December 31 to use up these funds, or you … [Read more…]