January 2018 Newsletter

Dear Valued Client,

Happy New Year!

It's that time of year again. January 31st is the deadline for employers and other organizations to file their W-2s, 1099s and 1098 forms. In addition to accumulating your various tax documents, you will also want to begin preparing your 2017 tax data.  To help our clients do that, we will send our pre-tax season mailing along with a customized tax organizer.  These are generally mailed by the end of the second week of January.   

We begin our tax season office hours on Saturday January 27th.  See our pre-tax season mailing for days and times.  We'll be ready to receive your 2017 tax documents and data once you have everything you need.  1st time clients should contact the office for an appointment.  Clients for whom we prepared a 2016 tax return can choose either to call for an appointment, drop off, mail (don't mail originals) or scan and post electronic documents to a secure client internet portal.  If you post 2017 tax documents to your client portal, please call or send an email to the office letting us know that you have completed posting your documents.

Now that tax reform is a reality, it is important to understand how these changes will affect your finances in the coming years. We have assembled some of the key points of the new law, including a side-by-side comparison to review the differences. We know you will have questions and we will continue to keep you updated year round. In addition, we highlight the tax consequences of the many life events, short-term rentals, business startups, QuickBooks tips and much more. Check out our blog and social media sites for frequent tax reform and business updates.

Our goal is to provide you an unparalleled level of client service. If you see something that you want to talk about, please contact us to explore the possibilities. We rely on satisfied clients as the primary source of new business, and your referrals are both welcomed and most sincerely appreciated!


Tax Reform and Your Taxes

Well, the Tax Cuts and Jobs Act (H.R. 1) has passed, mainly starting in 2018, and if you are confused by how this new law will impact you, you're not alone. As has become the norm for Congress, it played brinksmanship and waited to almost the end of the year, in the midst of the holidays, to pass this very extensive tax bill, providing little time for anyone to plan for 2018.

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Tax Reform Special Report

On Friday, December 22, 2017, the "Tax Cuts and Jobs Act" (H.R. 1) was signed into law by President Trump. Almost all of these provisions go into law January 1, 2018.

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Divorced, Separated, Married or Widowed? Unpleasant Surprises May Await You at Tax Time

Taxpayers are frequently blindsided when their filing status changes because of a life event such as marriage, divorce, separation or the death of a spouse. These occasions can be stressful or ecstatic times, and the last thing most people will be thinking about are the tax ramifications. But the ramifications are real and the following are some of the major tax complications for each situation.

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Using Online Agents to Rent Your Home Short Term? You May Be Surprised at the Tax Ramifications

If you are among the many taxpayers renting your first or second home using rental agents or online rental services that match property owners with prospective renters, such as Airbnb, VRBO and HomeAway, then you should know the IRS has special rules related to short-term rentals.

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5 Things You Need to Do After Jumping Into Entrepreneurship

Congratulations! You've decided to dive into the exciting world of entrepreneurship and bring that great business idea to life. Whether you're opening a local brick-and-mortar business that your community needs, looking to grow rapidly in the next few years and get an investor, or just keep things small and solo, certain steps come next that aren't as exciting as preparing for launch, but need to be done.

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Driving For Uber Or Others? Your Tax Situation Is Unique

With tax time approaching, if you drive for Uber, Lyft or a competitor, here is some tax information related to reporting your income. You are considered self-employed and will report your income and deductible expenses on IRS Schedule C to arrive at your taxable income for income tax and self-employment tax.

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Sold Your Home Last Year? Thinking of Selling? Read This!

If you sold your home last year, or if you are thinking about selling it, you should be aware of the many tax-related issues that could apply to that sale so that you will be prepared at tax time and not have to deal with unpleasant surprises. This article covers home sales and the home-sale gain exclusion, particularly when that gain exclusion applies and what portion of it applies. Certain special issues always affect home sales, such as the use of a portion of the home as an office or day care center, previously use of the property as a rental, and acquisition in a tax-deferred exchange. Other frequently encountered issues are related to the “2 years out of 5” rules for ownership and use, as these rules must be followed to qualify for gain exclusion.

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Important Things to Know About IRAs

The individual retirement account (IRA) is one of the favored ways to save money for retirement. There are two types of IRAs: the traditional IRA and the Roth IRA. The annual maximum that an individual can be contributing between the two types of IRAs is $5,500, unless the individual is 50 years of age or older, and then the maximum is increased to $6,500. The basic contribution amount is inflation adjusted annually and the amount quoted is for 2017, while the additional amount for those 50 and older is fixed at $1,000. Contributions to an IRA may or may not be tax deductible depending on the type of IRA and, in some cases, the amount of the taxpayer's income for the contribution year and whether the taxpayer participates in an employer's retirement plan.

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5 QuickBooks Reports You Need to Run in January

Does your accounting to-do list look like a clean slate, or are critical 2017 tasks still nagging?

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Somerset, MA 02726
Ph: (508) 675-7557
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