- Corporations will have their tax rate cut from 35% to 21%
- Top marginal income tax rate for individuals will be lowered from 39.6% to 37%
- State & local property taxes, income taxes, and sales taxes will be deductible up to $10,000. It will be some combination of these three taxes that will be allowed.
- A pass-through deduction on earnings - those businesses that are pass-through (LLCs, S-Corporations, partnerships, sole proprietorships) will be able to deduct 20% of operating income
- Medical expenses are now deductible above 7.5% of AGI. Current law was at 10% of AGI (this available for 2 years).
- Credit for children under 17 is raised to $2000 from $1000.
- Tax changed: 10%, 12%, 22%, 24%, 32%, 35%, & 37%. Brackets expanded to have more income taxed at the lower rates.
December 23, 2017
October 24, 2017
LFC would like to encourage small business owners & individual taxpayers to begin year-end tax planning as soon as possible. Whether you run a business or are a W2 employee, there are many things one can do before the year ends.
Go to the LFC website to schedule a time to meet:
October 9, 2017
The other two processes, as offered by QuickBooks, are a hands-on, cost-effective approach for small businesses. And, they are easy to use. QuickBooks Desktop Payroll and QuickBooks Online Payroll are offered as a subscription-priced product. All taxes and governmental reports can easily be filed electronically.
LFC provides payroll solutions using QuickBooks products. Please contact our office if you need to beginning with a payroll system or if you are interested in converting to the QuickBooks system from an existing system.
October 8, 2017
- Cost: $20/month
- Includes 5 hrs of accounting/consulting services for the year at a discounted rate of $48/hr (vs $60/hr normal rate - 20% discount)
- 15% discount on tax return for the year
- W4 analysis
- Year-end tax planning
- Email & Telephone correspondence
- Tax preparation
- Research time on accounting/tax issues
- Cost based on pre-paid hours purchased for a month at $50/hr
- Fees due on the 1st of each month
- Advanced payment can be used for wide range of services
- QuickBooks Set-up
- Remote Access troubleshooting
- QuickBooks Training
- General bookkeeping services
October 3, 2017
1. Received a large bonus or will receive a year-end from your employer
2. Sold stock for a large gain
3. Change of filing status (married to single, single to married, married to widower/widow, etc)
4. Child born
5. Child turned 18 in 2017 (loss of child credit)
6. Taxpayer or dependent became a college student
7. Began taking care of an elderly parent
8. Started a business
9. Sold a business
These are just some things to keep in mind for tax planning before the end of the year.
Keep in mind, taxes are paid by taxpayers through withholding taxes from paychecks and through estimated tax payments if self-employed or you have income not subject to withholding such as pensions, interest, or dividends. If you need help assessing whether you will need to make estimated tax payments, please contact LFC office for assistance.
The 4th quarter estimated tax payment is due 1/15/18.