The IRS has posted the final 2018 Form 1040, U.S. Individual Income Tax Return, numbered Schedules 1 through 6 and the 1040 Instructions. The 2018 Form 1040 uses a “building block” approach so taxpayers with straightforward tax situations only need to file Form 1040, while those who need to provide supplemental information can use the new numbered schedules they need. For the tax year 2018, taxpayers will no longer use Form 1040-A or Form 1040-EZ but instead use the redesigned Form 1040. More...

WASHINGTON — The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: •58 cents per mile driven for business use, up 3.5 cents from the rate for 2018, •20 cents per mile driven for medical or moving purposes, up 2 cents from the rate...

Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2019 expenses right now reduces your taxes this year, without question. While it’s true you kicked the can down the road some, perhaps you have an offset with a big deduction planned for next year. And even if you don’t have such a plan at the moment, you have plenty of time...

Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends.   Put Your Children on Your Payroll   Did your children under age 18 help you in your business this year? Did you pay them for their work?   You should pay them for the work—and pay them on a W-2.   Why? First, W-2 wages paid by the parent to the parent’s...

As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA).   You likely want your employees to be on a path of continuous improvement.   There’s much to know about how such business deductions work for both you and your employees. The Tax Cuts and Jobs Act (TCJA) tax reform may trigger a need for you to change your strategy to help your continuous...

Two questions:   Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year?   Here are some ideas for you to consider:   Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds   Let’s say that on or before December 31, 2018, you or your corporation buys and places in service a new or used SUV or crossover vehicle that the manufacturer classifies as a truck and that has a gross vehicle weight...

When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans. But year-end is approaching, and now’s the time to take action.   I’ve included below six action steps for 2018 that can help you reduce your taxes and pocket extra money.   Put your retirement plan in place no later than December 31 so you are absolutely sure that you have a plan. In fact, be sure to make a contribution to the plan before December 31. Convert to...

The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money.   Here’s the basic strategy:   Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains.   Think of this: you are paying taxes at a 71.4 percent higher rate when...

It’s time to examine your existing cars, SUVs, trucks, and vans for some profitable year-end business tax deductions.   Your first step is to identify your gain or loss on sale. Once you have the gain or loss, know these basic rules:   Gains attributable to depreciation produce ordinary income. Gains in excess of original basis produce capital gains. (This is unlikely to happen on most business vehicles, but it can happen with classic and antique business vehicles because they can go...

If you pay attention to financial news, you can’t escape hearing about Bitcoin and other cryptocurrencies. Bitcoin is just like country music, Justin Bieber, and pineapple on pizza — people either love it, or hate it, but there’s no middle ground. The billionaire Warren Buffet dismisses it as a “mirage,” a “Buck Rogers” phenomenon, and “rat poison squared.” But legions of fans see it someday replacing government-backed currencies. Odds are good that...