The Tax Code Has Changed: Have You?

With the new tax law mostly coming into effect on 1/1/18, the Congress added a new Section 199A, allowing for the first time qualifying tax payers to deduct 20% of their “qualified business income”. “At its most simple, a qualifying taxpayer who has “qualifying business income” of $100,000 would only pay tax on $80,000. But many requirements must be satisfied and big changes loom on the horizon. Taxes – both for individuals and businesses – have changed forever,” states Steve Moskowitz, Lead Tax Attorney and Founding Partner at Moskowitz LLP.

An accomplished tax attorney with over three decades of experience under his belt, Steve knows what it means to dream big and work hard. Steve built his practice from the ground up, holding tight to the vision of one day achieving the American Dream. Steve still believes in that dream, and he strives to uphold it for his clients. Having single-handedly grown his firm to an impressive team of tax attorneys and accountants Steve understands firsthand the strength and endurance it takes to run a business. Now, his mission is to help other entrepreneurs and individuals avoid the dire pitfalls of poor tax planning heading into tax season.

Steve and his dedicated team are here to make sure people feel empowered, confident and prepared to take advantage of the new tax law. The new tax law is broad, and could affect you, particularly if you:

• Own a U.S. business: Good news! The new tax law introduces a 21% corporate tax rate, and also provides a 20% tax deduction for qualified pass-through entities, such as S Corporations, LLCs, Sole Proprietors and Partnerships.
• Are planning your estate: Time to revisit your plans. The estate tax exemption has doubled to $11.2 million ($22.4 million for married couples filing jointly), so you may want to remove restrictive tax provisions and update your documents.
• Are buying a home: The new tax law caps local sales and real estate taxes at a $10,000 deduction per year, so you may want to think twice about buying in highly taxed locations. California homeowners, as well as owners in New York, New Jersey, and other high-tax areas will be affected. Mortgage interest deductions now extend to new homes priced at $750,000 and below, which is important to consider before you purchase.

All of these big changes may require additional effort as you look to filing next year’s tax return, but don’t panic – overall, the new tax law gave much more than it took away, if you know how to take advantage of it! The tax penalty for lack of health insurance is eliminated, and individual tax rates are lower across the board, as tax thresholds, standard deduction amounts and the child tax credit increase, leaving more money in your pocket. However, if you rely on itemized deductions for things like state and local income tax, unreimbursed employee expenses, casualty losses and spousal support alimony payments – all of which have been effected – to reduce your taxable income, you may need to start taking proactive measures now. If you are currently in divorce negotiations, now it is imperative that you understand the MAJOR change in the new tax law.

Thirty years ago, Steve founded Moskowitz LLP to help businesses and individuals navigate the complex tax code. Today, Steve and his team offer top-notch client representation because they want the new tax law to work for you. Contact Steve and his team today at 415-394-7200, or visit www.MoskowitzLLP.com to schedule a consultation and learn how to use the new tax law to legally minimize or eliminate your taxes if you qualify.

About Moskowitz LLP:
As a seasoned tax attorney, who practiced as a CPA for a “Big 8” (now “Big 4”) CPA firm, before he became a tax attorney, Steve Moskowitz, founded Moskowitz LLP 30 years ago, offering clients a full suite of tax law from domestic to international tax law, criminal tax law, tax planning and tax preparation of current and delinquent fillings. Steve taught tax, law and accounting at prestigious universities at the beginning of his career, and as an expert legal analyst for top TV and radio stations appearing daily on the radio and weekly on TV, Steve knows his profession and his message is simple: Don’t go it alone against the IRS. Passionate about helping clients navigate the intricacies of tax law, Steve practices tax law as founding partner of Moskowitz LLP, overseeing a team of accomplished tax attorneys and accountants. Visit www.MoskowitzLLP.com or call Moskowitz LLP at 415-394-7200 for more information about legal services, valuable tax resources and to request a tax consultation.