Your 2019 Tax Queries Answered – Part Two

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Your 2019 Tax Queries Answered Part Two
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• Tax time comes around with surprising regularity,
  and when it seems youve only just got over the
  stress of filing in time for the deadline, that
  time of the year comes around again and our taxes
  loom over us like a rain cloud.
• With the tax reform now in full swing, its more
  important than ever to get your taxes right and
  to try to understand the changes to the law as
  best as possible. Here are a few more of your
  2019 tax queries answered
• Alimonydeductible, or not?
• For divorce agreements finalized on or before the
  31st, December 2018, spouses paying alimony can
  still deduct the payments on their returns, while
  the recipient must include the income on theirs.

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• However, for divorces completed in 2019 and
  later, payments of alimony can no longer be
  deducted, and recipients will not have to include
  them on their returns.
• What has changed with meal and entertainment
  expenses?
• Entertainment or amusement expenses can no longer
  be deducted, but you are still permitted to make
  a 50 deduction for meal and travel expenses,
  provided you can prove that you were dining with
  clients or traveling for a specific
  business-related purpose. Meals cannot be
  considered extravagant, and if you throw an
  office party or provide food at a meeting, you
  can still deduct 100 of the cost. Most
  importantly, bills must be itemized and give a
  direct proof of the amount paid.

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• How do I know if I qualify for pass-through
  status and its 20 deduction?
• Some business owners who are set up as
  pass-through companies, under the new tax law
  are permitted to deduct 20 of their qualified
  business income, and here is where seeking help
  from a qualified tax professional makes business
  sense. Some owners of businesses do not realize
  that they are already classed as pass-throughs
  since income is passing through the business to
  their personal tax returns.

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• Is it wise to think again about gifts given to
  family when I have a taxable estate?
• This tax affects the wealthiest individuals, and
  the total amount that can be passed on to
  legitimate heirs without any consequences from
  federal taxes has almost doubled, to a whopping
  11.4 million per person. However, fast forward a
  few years and in 2026, unless Congress takes some
  action, the amount will go back to 5 million,
  with state estate taxes confusing matters even
  more.

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• This article only goes part way to explaining the
  myriad changes to tax laws that have recently
  occurred, and if youre concerned about your tax
  bill and how best to prepare and plan your taxes
  for the future, you should seek help from a
  qualified and experienced tax professional.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.