Latest News

What’s inside

Using the 0% tax rate
Working around the new “kiddie tax”
Final regulations clarify IRC Section 199A
Tax calendar

Factoid: Bearing more risk

According to the Centers for Disease Control and Prevention, between 2007 and 2018 the percentage of individuals under age 65 enrolled in high-deductible health plans (with deductibles of at least $1,350 or $2,700 for family coverage in 2018) increased from 17.4% to 46%, a 264% increase.

Did you know?

Home sellers in 2018 realized an average home price gain of $61,000 since purchase, a 12-year high. That average profit represented an average 32.6% return on investment, the highest since 2006. Individual markets with the leading returns were mainly in the west, topped by San Jose (108.8%), San Francisco (78.6%), and Seattle (70.7%).



What’s inside

The new math of municipal bonds
Handling qualified charitable distributions
Deducting qualified business income
Tax calendar


With 44 million borrowers owing a total of $1.5 trillion, student loan debt now exceeds credit card debt.

Did you know?

Minnesota ranks as the least tax-friendly state for retirees. State income tax rates range from 5.35% to 9.85%. Taxes often are imposed on pensions, retirement plan distributions, and some Social Security benefits. Connecticut, Kansas, and Vermont are next on this high tax list.

Practice development tip
Use tax returns as a teaching tool

This year’s tax filing season brings the first returns under the Tax Cuts and Jobs Act (TCJA) of 2017. Some features of the TCJA will be new to clients and may be startling. You can use these returns to trigger conversations and generate future tax-planning sessions. For example, many married clients who generally itemize deductions will be taking the standard deduction for 2018, mainly due to the $10,000 cap on state and local tax (SALT) deductions.

Smart tax, business and planning ideas from your Trusted Business Advisor SM January 2019

In this issue
1 Double (and triple) IRA season is here
2 Drive cautiously… but carry ample auto insurance
3 IRS says business meal deductions still apply
4 Tax calendar

Double (and triple) IRA season is here

The start of each year might be considered “Double IRA” season. Until mid-April (the 15th, in 2019), you still can make contributions to an IRA for 2018, if you have funds you’d like to save for retirement.Most workers and their spouses may each contribute up to $5,500, or $6,500 for those who were 50 or older at the end of 2018.

Tax and Financial Reporting

News and Tools August 2018

The Tax Cuts and Jobs Act (TCJA) generally effective stating in 2018, raised the threshold for the requirement to use the percentage-ofcompletion method (PCM) from $10million average annual gross receipts (AAGR) to $25million for contracts starting in 2018.

Smart tax, business and planning ideas from your Trusted Business AdvisorSM November 2018

Year-end planning under the new tax law

The Tax Cuts and Jobs Act of 2017 (TCJA),passed at the end of last year, generallytook effect in 2018. Therefore, the fourthquarter of this year provides the first real opportunity for year-end planning under what has been called the most important tax law passed in more than 30 years. (more…)

How the new tax law affects 529 plans

Now the G.I. Bill is forever
Education as a small-business fringe benefit
Tax calendar

Factoid : Higher education

Measured by market share, total accounts, and assets under management (over $66 billion), Virginia529 is the largest 529 plan in the nation.


Did you know ?

The Servicemen’s Readjustment Act of 1944 (G.I. Bill) paid almost $4 billion to nearly 9 million veterans from 1944–1949 in unemployment compensation. The education and training provisions existed until 1956, and the Veterans’ Administration offered insured loans until 1962. The Readjustment Benefits Act of 1966 extended these benefits to all veterans of the armed forces, including those who served during peacetime.


Article : How the new tax law affects 529 plans

For many years, 529 college savings plans have offered a tax-favored way to save for higher education. These plans, officially qualified tuition programs, are named for the IRC section that provides their advantages.
In brief, 529 plans are funded with after-tax dollars. In college savings plans, account owners choose from a menu of investments, and any earnings are untaxed. Distributions are also tax-free if they do not exceed the qualifying educational expenses of the account beneficiary: payments of tuition, fees, supplies, and certain housing expenses for the account beneficiary’s study at an eligible educational institution. Before 2018, eligible educational institutions included only post-secondary institutions.