Itemized Deductions

The $10,000 SALT Limit and the Rental Real Estate

The $10,000 SALT Limit and the Rental Real Estate

                Under the recently enacted Tax Cuts and Jobs Act, State And Local Tax (SALT) deductions are limited to $10,000.  How does this affect the individual taxpayer?

QUESTION:  Are SALT payments made on my rental real estate subject to the $10,000 cap?

ANSWER:  Generally, under the old law, all SALT payments were deductible.  However, the new law caps deductible SALT at an aggregate of $10,000 for individual taxpayers.

OF SALT, TAXES & MORTGAGES…

OF SALT, TAXES AND MORTGAGES…

Do you pay State and Local Taxes (SALT)? If you live in any of New York, California, New Jersey, Connecticut, or any other of the so-called high-tax states, you likely pay more than the national average in SALT.  Prior to 2018, you were allowed to itemize all of your SALT payments on your federal tax returns.  However, the recently passed law, the Tax Cuts and Jobs Act, curbs the deductibility and otherwise affects you disproportionately, compared with the rest of the country.   The changes to the deduction of State and Local Taxes (SALT) on federal tax returns are generally as follows

Getting a New Car for Business? Buy or Lease? Part 2: Tax Consequences

This blog will address the tax consequences of both leased and owned vehicles used for business purposes. Hopefully, it will offer some insight into the decision as to what is best for your business: buying or leasing?

With both owned and leased cars, any related expenses may be deducted using the standard mileage rate or the total amount of actual expenses. If the vehicle is owned, you may choose the standard mileage rate in the first year and switch to the actual expense method in a later tax year. If a vehicle is leased, you may also choose the standard mileage rate in the first year but once you the standard mileage rate is chosen, it must be used for the life of the lease.

Getting a New Car for Business? Buy or Lease? Part 1: Leased Vehicles

Many business owners rely on transportation to achieve the goals and purposes of their business. A car purchased for use in a business has certain tax advantages for the owner. However, many business owners are now leasing cars for business use. More Americans lease autos than ever before because of attractive monthly costs and the ability to change cars frequently to keep up with new technology and safety features. But what’s better for your business, an owned or leased car?

Seven Deadly Tax Sins

7 Deadly Tax Sins

When it comes to the IRS, some bad acts are worse than others.  We have compiled below the top ones to avoid at all costs.  However, if you should find yourself in the middle of one, you should certainly call tax attorneys to get you out of the bad situation (yes, it is a bad situation).

Answers to FAQs for Individuals of the Same Sex Who Are Married Under State Law

Here are some answers to frequently asked questions relating to the tax consequences for individuals participating in a same-sex marriage.

*When are individuals of the same sex lawfully married for federal tax purposes?

For federal tax purposes, state or foreign law determines whether individuals are married.

*Can same-sex spouses file federal tax returns using a married filing jointly or married filing separately status? Yes.

  • For tax year 2013 and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status.

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