Category: Tax Cuts and Jobs Act

Understanding Business Valuation Valuations are subjective in nature so the expert’s report must be persuasive. It is critical to provide supporting information and documentation for every assumption, methodology, or process and make sure that it can be replicated by the reader. The IRS is going to read any valuation report attached to an estate tax return or a gift Tax Return. Any errors, no matter how small, will destroy the appraiser’s credibility. Objectivity and independence are critical to the role of the appraiser. … Read more ›

The Inflation Reduction Act provided the IRS with billions of dollars of additional funding to reduce the so-called “tax gap” between what taxpayers owe and what they actually pay. The tax agency has already launched numerous initiatives aimed at this goal, including several business-related compliance campaigns. Let’s take a closer look at three of the most significant recent targets.  Abusive Pass-through Practices The IRS has accelerated its enforcement efforts against partnerships and other pass-through entities, which it claims have been… Read more ›

This is the first article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part II. Although preparing your taxes can be a smooth process in some years, significant life transitions can be counted upon to complicate your tax situation eventually. This article won’t delve deeply into each transition—other articles on our website (e.g. regarding divorce) provide greater detail for each transition. But CBM would like to offer the following overview… Read more ›

Navigating the financial aspects of a divorce can be hard enough without also worrying about the impact of legislation on your personal financial life. And yet, here we are! At the end of 2025, several provisions of the 2017 Tax Cuts and Jobs Act (TCJA), the most notable tax legislation to pass since the 1980s, are scheduled to expire. Given the number of years in which the TCJA has now been in place, divorced or divorcing individuals may have been… Read more ›

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget. Business Tax Provisions The budget proposal includes many changes… Read more ›

For married people with large estates, the Tax Cuts and Jobs Act (TCJA) brings welcome relief from federal estate and gift taxes, as well as the generation-skipping transfer (GST) tax. Here’s what you need to know and how to take advantage of the favorable changes. Estate Planning Tips: Estate and Gift Tax Basics The TCJA sets the unified federal estate and gift tax exemption at $12.92 million per person for 2023 (up from $12.06 million for 2022). For married couples,… Read more ›

The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the many areas ripe for action in the next two years. Retirement catch-ups at risk The SECURE 2.0 Act, enacted at the tail end of 2022,… Read more ›

The IRS has announced the 2023 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Background: If you use a vehicle for business driving, you can generally deduct the actual expenses attributable to your business use. This includes expenses such as gas, oil, tires, insurance, repairs, licenses and vehicle registration fees. In addition, you may claim a depreciation allowance for the vehicle, based on the percentage of business… Read more ›

The IRS recently issued its 2023 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, many amounts increased considerably over 2022 amounts. As you implement 2022 year-end tax planning strategies, be sure to take these 2023 adjustments into account. Also, keep in mind that, under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using the chained consumer price index (also known as C-CPI-U). This increases tax-bracket thresholds, the standard deduction, certain… Read more ›

Updated August 14, 2024 What is a Pass-through Entity Tax? The Tax Cuts and Jobs Act of 2017 (TCJA) imposed a $10,000 limitation on the state and local tax (SALT) deduction for individuals who itemize deductions on their federal income tax return for tax years beginning after 2017 and before 2026. In response, many states have enacted a mandatory or elective pass-through entity (PTE) tax as a workaround to the SALT cap. The PTE tax allows eligible pass-through entities to… Read more ›