Filing Statuses

The IRS allows taxpayers to file returns as single, married filing jointly, married filing separately, head of household, or qualifying widow(er). Your marital status on December 31st determines your marital status for the entire year. If you were married during 2018, whether is was January 1st or December 31st, you are considered married for the whole year. Same applies for …

Security of Online Software

We often recommend our tech savvy clients to use Quickbooks Online. Some clients are concerned with the security of online software. With breaches like Equifax, the general public is skeptical to trust online providers. However, Equifax’s data was not encrypted, something almost all online accounting and finance providers do. Quickbooks Online uses 256-bit encryption to prevent unauthorized entities from reading …

Tax Reform: Corporations and Flow Through Income

After much speculation and anticipation, the “Tax Cuts and Jobs Act” was passed into law on December 22nd, 2017. This law will affect your 2018 return, which will be filed in 2019. Corporate income tax once had eight tax brackets, ranging from 15-39%. The new tax law has eliminated all but one tax brackets, a 21% marginal tax rate. Qualified …

Tax Reform: General Business Changes

After much speculation and anticipation, the “Tax Cuts and Jobs Act” was passed into law on December 22nd, 2017. This law will affect your 2018 return, which will be filed in 2019. One change that will really affect our local business owners and farmers is the elimination of like-kind exchanges. Real estate transactions are still eligible for like-kind exchanges, but …