Don’t Let the New Tax Laws Take You on a 3-Hour Tour!

Just sit right back and you’ll hear a tale, a tale of the changing rules. 2018 tax laws get confusing, but we’ve got your back. Yes, we’ve got your back.

July is a time for sun, fun, and vacation. Put stress on the back burner, and know that our barton CPA staff is constantly finding ways to take care of your tax questions. professor and gingerAs we all navigate through the unchartered waters of the new 2018 tax laws, we want you to learn a few things along the way. We don’t want you to get lost on a three-hour-tour…that could mean years of confusion! So let’s put ourselves in the trusty Barton Minnow – ala Gilligan’s Island – and let our fearless leader, Professor Greg Barton, guide us through some important facts:

  1. There are still seven tax brackets and tax rates for 2018: 10%, 12%, 22%, 24% 32% and 37%.
  2. Standard Deduction Amounts will increase to $12,000 for individuals, $18,000 for heads of households, and $24,000 for married couples filing jointly.
  3. There is an additional Standard Deduction amount of $1,300 for aged or blind spouses and $1,600 for each elderly or blind person who is unmarried.
  4. Vacationing in the mountains can sometimes lead to spiders, which can then lead to cutting vacation time short. (This might have a little Ginger – aka Dee Dee – written all over it.)spider
  5.  You can gift your child or grandchild $15,000 tax-free.  Did you hear that? TAX-FREE. Get that college fund started off right, or help pay down those student loans. We can help!
  6. Have you seen the new sample tax return? It’s super cute. Meaning super tiny. The Hubble telescope is still trying to find it.
  7. The new tax code makes a big change to the way pass-through income is taxed – including sole proprietorships, LLCs, partnerships, and corporations. In other words, if you own a small business and it generates $100,000 in profit in 2018, you may be able to deduct $20,000 of it before the ordinary income tax rates are applied. Certain businesses that have over $157,500 ($315,000 for a joint return) are subject to special rules that limit this deduction.
  8. Untitled 2If you decide to get a new dog, there’s a 75% chance it will eat all your expensive pillows and patio furniture.
  9. Mortgage interest payments are deductible on acquisition mortgage debt of up to $750,000 – formerly it was $1,000,000. Still waiting for the numbers on stress medication deductibles.
  10. Reminder: if your business is a Partnership, S Corporation, or LLC your taxes are due September 17. If you are a C Corporation, sole proprietorship or SMLLC, your taxes are due October 15. Mark your calendar, and we’re here for you!

CALL US, LOG ONTO OUR WEBSITE, OR SIMPLY DROP IN FOR YOUR FREE CONSULTATION!

We’re here to help you navigate through these uncharted 2018 waters.

760.969.6499

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