What to Expect this Tax Season

This tax season will be the first which incorporates the significant tax rule changes implemented under the Tax Cuts and Jobs Act passed in late 2017 (“TCJA”). One of the goals of the TCJA was to simplify tax filings, however despite the rhetoric, the TCJA added significant complexity that may change a process you thought… Read More »

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Estate Planning with S-Corporations

Estate Planning with S-Corporations With the federal and New York state tax exemptions being so high ($11.18 million and $5.25 million, respectively), clients with family businesses held in an S-corporation are less focused on reducing estate taxes and are more focused on avoiding probate and reducing future capital gains tax through obtaining a basis step-up…. Read More »

What Should I Know about the Tax Cuts and Jobs Act of 2017?

Although the original bill was once referred to as the “Cut, Cut, Cut” bill, the Tax Cuts and Jobs Act of 2017 (“TCJA”) does not provide a tax reduction for all taxpayers. Rather, for residents of high-tax states like New York and New Jersey, the TCJA may result in taxpayers seeing their tax bills increase…. Read More »

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What Are The Income Tax Rates Under The New Tax Law?

  Pursuant to the new federal tax law which is commonly referred to as the Tax Cuts and Jobs Act of 2017 (hereinafter “TCJA of 2017”), the individual income tax rates have changed significantly. For tax years beginning after December 31, 2017 and before January 1, 2026, all tax rates tables have changed for individuals,… Read More »

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How Does the Mortgage Interest Deduction Work?

The mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on a loan that is secured by their principal residence or secondary residence. Starting in 2018 the Mortgage Interest Deduction is limited to interest on $750,000 of what’s called “acquisition indebtedness” – a mortgage…. Read More »

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How Does the Medical Expense Deduction Work?

It is no secret that many senior citizens and individuals with disabilities are faced with significant medical costs each year, including the cost of long term care. These costs are often financially crippling for many seniors and individuals with special needs and their families. To offset the high medical expenses, many taxpayers take advantage of… Read More »

How Does the New Tax Law Impact Alimony Payments?

Under the newly enacted Tax Cuts and Jobs Act (TCJA), the rule applicable to alimony payments has been flipped on its head. Alimony is the payments that someone gives to an ex-spouse who earns less money.  Alimony payments, which are typically memorialized in the terms of a divorce settlement, are different from child support. Historic… Read More »

IRS and Department of Treasury to Withdraw Regulations Restricting Tax and Estate Planning Options

On October 4, 2017, the U.S. Department of the Treasury announced that it is recommending the complete withdrawal of the proposed regulations under Section 2704 of the Internal Revenue Code, which would have placed restrictions on liquidation of an interest for Estate, Gift and Generation-Skipping Transfer Taxes had they been adopted. These regulations, which were… Read More »

Trump Tax Reform Plan: How Will You Be Affected?

On September 27, 2017, President Trump’s Administration released its “Tax Reform Plan.” In addition to consolidating tax brackets from seven to three (12%, 25%, and 35% with income ranges to be provided later), President Trump’s new plan has addressed eliminating certain state and local tax deductions heavily utilized by New York and New Jersey residents… Read More »