Our Blog

Andrew Luce, CPA •

A commonly used tax savings strategy is done when an individual or employer makes a contribution to a Health Savings Account (HSA). Luckily, as an individual or employer, you still have time to make a contribution after December 31st to an HSA. For example, a contribution made into your HSA in 2019 might be deductible on your 2018 income tax return. The following information summarizes some key facts about the timing, deductibility, and contribution limits of HSAs:
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Andrew Luce, CPA •

One of the most commonly used tax savings strategies is done when an individual or employer makes a contribution to a retirement plan. Luckily, as an individual or employer, you still have time to make a retirement plan contribution after December 31st to an employer 401(k), solo 401(k), Self-Employed Pension (SEP), or Individual Retirement Account (IRA) and deduct the contribution on your income tax return. For example, a contribution paid into your retirement plan in 2019 might be deductible on your 2018 income tax return.  The following information summarizes some key facts about these retirement plans, including timing and deductibility of retirement plan contributions, among other things:
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Pollyanna King, CPA, MST •

As you pour through your checkbook register and piles of receipts for tax reporting items, you may need to make a list of your 2018 charitable donations. For people who file using the itemized deduction method, and report your donations on Schedule A instead of using the standard deduction, you should have a list with the charity’s name, the date and the amount that was given followed by a grand total for your record of 2018 charitable donations.
 

Lena Rozzi, CPA •

The Tax Cuts and Jobs Act (TCJA), passed in December 2017, was one of the largest tax reforms in decades. Needless to say, it caused numerous changes that affects many individual taxpayers.  Homeowners may notice changes to deductions related to their home mortgage interest effective for the 2018 tax year.
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Andrew Luce, CPA •

​If you are a business owner and keeping tabs on the new tax laws, you’ve likely heard a lot about a QBI (Qualified Business Income) tax deduction and how SSTBs (Specified Service Trade or Businesses) might miss out on this new 20% deduction.  Yes, there is a chance you won’t receive a full 20% deduction if you’re a married business owner, making over $315,000 (the beginning threshold for the QBI tax deduction phase-out), and in healthcare (one of the SSTB classifications), whereas a business owner of a landscaping company will likely fully benefit from this deduction with proper planning.  Before your mind starts racing about the inequalities of the new tax law, we should all be able to agree on at least one thing - the tax rates are lower this year (woohoo!), so it’s not recommended to make less money because you want to qualify for this 20% deduction.  Seriously, this 20% deduction wasn’t around in the past and you weren’t worried about making too much money so why worry about making too much money now when your rates are actually lower.  If you qualify for the deduction it will be gravy on top.  Also, there has been a lot published about this new rule and we are here to help you determine if you will benefit from this deduction but in the meantime keep the dough flowing!  If you’re unsure how this new deduction will impact your business and/or whether or not you’ll be included in the dreaded SSTB category, please feel free to contact me or one of our professionals. 

Alyssa Hodges, CPA •

Now that we’re past the end of 2018, it’s that time of year where you get to pull together all of your tax documents. Your official tax forms may not have started arriving yet, but you can start putting together all of your receipts! I bet you love going through stacks of papers to put medical receipts and charitable deductions in a shoebox for your tax preparer, or maybe you stuff them in an envelope instead. Not so fast! 
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Lena Rozzi, CPA •
IRS Proposes Safe Harbor for Taxpayers Seeking the Section 199A Deduction for Rental Real Estate Activities
 
On January 18, 2019, the IRS released additional guidance on the much anticipated Section 199A deduction as many taxpayers eagerly await the opening of tax season. Among other issues, the guidance offers taxpayers a proposed safe harbor in determining when rental real estate activities can be treated as qualified trade or business for the purpose of taking the Section 199A deduction. This guidance is provided by the IRS in response to taxpayer uncertainty whether rental real estate activities qualify as a trade or business for the purpose of the Section 199A deduction. 
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Today, January 28th is the opening day of tax season for calendar-year 2018 tax returns. This means that the IRS is officially accepting electronic tax returns and taxpayers can begin submitting their federal returns today. 
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New Hampshire offers an Education Tax Credit that allows for certain state taxes to be offset by a credit for making donations to approved scholarship organizations. In 2018 the program was updated so that more taxpayers are eligible for the credit.
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Alyssa Hodges, CPA •

Itemized Deductions have changed considerably due to the Tax Cuts and Jobs Act of 2017. Since the standard deduction has nearly doubled, less people than ever before are going to be itemizing deductions. However, if you are right on the cuff, you may be able to implement a tax strategy called “bunching” to continue to take advantage of itemized deductions.