On Wednesday, September 27, 2017, President Donald Trump proposed tax cuts that will affect both individuals and businesses. If passed, these tax cuts will make up the most drastic changes the United States tax code has seen in a long time.

Here’s what taxpayers need to know.

This tax plan is designed to fulfill President Trump’s promise to lower taxes, provide better jobs and implement higher wages.

President Trump stated, “This is a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, companies start competing for American labor, and wages start going up at levels that you haven’t seen in many years.”Continue reading

High taxes in New York State have long been vexing residents, particularly those at retirement age. In nearly every category – real estate taxes, income tax, and even health insurance – New York residents regularly shell out more cash than those who live in other states. Desperate for some relief from the financial squeeze, many residents are choosing to spend their retirement years in more tax-friendly locales. In fact, between 2000 and 2010, 3.4 million residents left the Empire State making it the largest migration exodus of any state, according to the Tax Foundation.

To stem the damage, New York lawmakers have been making slow but steady progress on the issue of tax reform – but the state still has a long way to go if it wants to remain competitive with other states. Here are some of the most significant recent changes to date.Continue reading

Nationwide, students shoulder the burden of ever-increasing higher education costs. Fortunately, the Federal Government offers several tax breaks to defray those expenses. Here are the tax breaks available to current higher education students.

The American Opportunity Tax Credit

This tax break offers up to $2,500 per year, per student. Up to 40% of the credit is refundable. The AOTC can only be used for the first four years of a student’s post-secondary education. Students must be working toward a degree or credential at a qualifying institution, for at least half-time attendance.Continue reading

Couples who intend to divorce will have to approach their tax planning in an entirely different way. Whether you have already dissolved the marriage or plan on doing so, here is what to expect for the tax implications.

Transfer of Marital Home

If one individual is transferring property to the ex-spouse, it is treated as a gift – and the transaction may need to be reported on a gift tax return. The person receiving the property won’t be taxed, but whoever sells it will incur taxes.

This is when the valuable federal home sale gain exclusion comes into play. You’ll want to look at the potential capital gains on the house. If the person has owned and lived in the house for at least two years during the five-year period leading up to the date of sale, he or she may be able to exclude up to $250,000 in gains. The $250,000 exclusion is for each owner of the house.Continue reading

For those of you with a very specific set of skills and interests, you likely know exactly what you want to do with your life. Choosing a career isn’t something you need to think about, but there is something you may want to consider: being a contractor vs. an employee.

There are benefits to both options, and it is important to weigh each side objectively and decide which is the best choice for you. Let’s take a look at both and how they differ.Continue reading

We all spend money day in and day out, and while we don’t always pay close attention to what is being spent, it really pays to do so. In fact, staying on top of your finances can benefit your family in many ways. Let’s take a look at some of them.

You have more control over your money.

When you know exactly where your money is coming from and where it is going, you are better able to save for a rainy day. Unfortunately, many people don’t pay attention to how much they’re spending, making it harder to save.

By setting up a simple budget, you are being intentional about how you spend your money, as well as how you save it. Paying close attention to your budget gives you a clear picture of how much of your money is disposable income. You can make better decisions regarding large purchases and plan for future expenses.Continue reading

Article from Times Herald-Record
Monday, January 5, 2018

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The new tax law signed by President Trump has changed the way businesses must consider meals, entertainment and transportation expenses.

Generally, meal and entertainment expenses were previously 50 percent deductible. The changes made with the recent legislation (H.R. 1) mean that entertainment expenses are now 100 percent not deductible for amounts paid or incurred after December 31, 2017.Continue reading