Tax Laws « Harry Daniels CPA

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A Key Estate Provision Has Been Retained in the New Tax Law

Posted by Harry Daniels on January 6, 2018

On December 22, 2017, President Trump signed into effect a new tax law. While this is being referred to as a new tax law, it will have some far reaching implications regarding decisions on how you will run your business. These include such things as the structure of business – deciding to operate as a partnership, C-Corporation, S-Corporation, or a limited liability company (LLC). It will also impact financial planning, investment decisions, retirement planning, and how you will withdraw your retirement funds. This is a lot more than just a tax law. (more…)

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Early 2018 Tax Updates and Announcements

Posted by Harry Daniels on October 29, 2017

Several key points of tax information for 2018 have already been released. The first point is that the Social Security Administration announced that there will be a 2% increase in the monthly social security benefit checks starting in January, 2018. The downside is that there will also be an increase in the 2018 monthly Medicare cost that is automatically deducted from your social security check. In some cases, the increase in Medicare insurance cost will pretty much wipe out the 2% increase. (more…)

Posted in: Obamacare, Tax Laws, Tax Returns

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Hurricane Irma Update

Posted by Harry Daniels on October 5, 2017

A new tax bill was passed by Congress and signed into law by President Trump over the weekend that pertains to special tax provisions relating to Hurricane Irma. Basically, all of Florida has been declared a disaster area for which federal relief is available. In addition to extending most tax filing dates until January 31, 2018, there are a couple of new and significant points this new law serves that will help out Florida taxpayers and other taxpayers in the disaster areas of Hurricane Harvey and Hurricane Maria. (more…)

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New Tax Laws For Required IRA Minimum Distributions – Qualified Longevity Annuity Contract

Posted by Harry Daniels on March 1, 2016

Under current law, a person, once they reach 70 ½ years old, must begin taking a required yearly minimum distribution from a traditional IRA. The required minimum distribution amount that must be taken is based on the account balance on January 1 of each year divided by a factor for the age attained during that year. Law sets the factor for each age. As an example, a $100,000 IRA owned by a person who is 75 years old would have a factor of 22.9. The required minimum distribution would be calculated by dividing $100,000 by 22.9 resulting in a required minimum distribution of $4,367. There is no problem with taking more than $4,367. However, if you take less than the required amount, the IRS will assess a penalty equal to 50% of the shortfall. (more…)

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