Tag Archives: Tax Services

UPDATE: New Pennsylvania State Tax Withholding Obligation on Certain Leases

Pennsylvania Act 43 of 2017 created a withholding obligation for certain payors of PA-source income and lessees of PA real estate to non-residents.  Beginning January 1, 2018, anyone that makes payments to non-resident individuals or disregarded entities with a non-resident member that is subject to 1099-MISC reporting is required to withhold PA tax from the […]

Individual Tax Provisions Included Within the Recent Budget Deal

On February 9, 2018, Congress passed and the President signed into law, the “Bipartisan Budget Act of 2018.”  Included in the act are several tax provisions, including “extenders” for individuals, which affect the 2017 tax year.  These “extenders” are:         1. Exclusion for discharge of indebtedness on a principal residence:  Normally, a […]

Expanded Use of Tax-Advantaged 529 Accounts

Internal Revenue Code (IRC) Section 529 defines qualified tuition programs, known colloquially as 529 programs, or 529 accounts.  These accounts have historically provided for a tax-advantaged way of saving and paying for post-secondary tuition and other “qualified higher education expenses.”  Under the new federal tax law, the definition of “qualified higher education expenses” has been […]

2018 Standard Deduction Changes May Mean Less Recordkeeping for You

Beginning for the tax year ending December 31, 2018, the standard deduction is increasing to $24,000 for married individuals filing a joint return, $18,000 for head-of-household filers, and $12,000 for all other taxpayers, adjusted for inflation in the 2019-2025 tax years.  Additional deductions are available for the elderly and the blind.  This increase in the […]

Business-Related Entertainment Deduction Disallowed in 2018

Beginning in 2018, the recent federal tax law changes have eliminated the 50% deduction for business-related entertainment expenses.  Under previous law, ordinary and necessary expenses for an activity considered to be entertainment was permitted as a deduction of 50% of the expense provided that the activity was directly related to the active conduct of a […]

Time Is Running Out: Why You Might Want to Consider Making Your Charitable Donations Before December 31, 2017

With the new tax bill being signed on December 22, 2017 just before the long, Christmas holiday weekend and most of the new provisions taking place on January 1, 2018, there is little time left for 2017 tax planning and executing year-end tax moves.  However, a few days remain in 2017 and one very smart […]

Tax Reform Update

Shortly before lunch on Wednesday, December 13, 2017, leaders from the House and the Senate have reached an agreement on a final tax bill.  A final vote on the tax bill is expected to occur next week.  Highlights of the agreement include lowering the corporate tax rate to 21 percent from the current 35 percent, […]