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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.

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. (more…)

What’s Inside
More give in the gift tax
Don’t neglect estate planning
Moving your business to a low-tax state
Tax calendar

Factoid : Bountiful bequests

The IRS has clarified that the 2018 indexed federal estate tax exemption amount is $11.18 million, not the original estimate of $11.2 million.

Did you know?

Recognizing tax burdens, the U.S. areas with the highest cost of living are Manhattan, San Francisco, Silicon Valley, and Brooklyn, in that order. Among 253 locations studied, total taxes as a percentage of gross income range from 25% (Casper, WY) to 45% (Manhattan, NY). In lower cost areas such as Memphis, Oklahoma City, and Cincinnati, gross income under $75,000 could provide a standard of living requiring over $300,000 in Manhattan and more than $200,000 in San Francisco.

Source: Wahrheit Ventures (more…)