The Details of Tax Cuts and Jobs Act 

The tax cuts and jobs act (TCJA) which was signed in December 2017 was focused on four things. Those four things are:

  • Tax relief for middle-income families
  • Simplification for individuals
  • Economic growth for families
  • Repatriation of overseas income

My goal is to provide some digestible information for the preparation of taxes in 2019. Within this post, I will not be covering the repatriation of overseas income. This is for middle-class Americans. For business owners, I would advise you contact me or reach out to your tax advisor as your tax planning strategy may already have some provisions in place for you.

Tax  relief for middle-income families

Part 3 of The GOP’s TCJA brought a significant break to American families. For instance the standard deduction went from $6,500 to $12,000 for individuals and $13,000 to $24,000 for married filers respectively. This gives so much room for those families who were not able to use itemized deductions because they did not have a home to take advantage of the mortgage interest deduction. In addition to that, (see section 11022) provided an increase to of an increase $1000 to the child tax credit. This brings the credit up to $2,000 for a qualified child. If you have any questions on how this affects you, do not hesitate to send me an email.

Simplification of tax preparation for individuals 

I’ve detailed the some of ways the TCJA simplified the tax code for us. Again, let’s look at the simplification of the tax code in more detail. The elimination of the personal exemption until December 31st, 2025 (See section 11041) means you as the taxpayer will look for tax savings in other areas. For the most part, the exemption isn’t as significant as the doubling of the standard deduction, pat yourself on the back for that GOP. On top of that, simplifying your taxes puts more time into a professional preparers tool box and you as the taxpayer can go back to spending more time with your family. The Tax foundation created so many cool spreadsheets to break some of this down, see more here.

Economic Growth from the Tax Cuts and Jobs Act

Going back to school is not why I am writing this post for you today. However, I did want to provide my own analysis on the benefits of reduced taxes for corporations. We turn on the television or in my case, YouTube and hear about many jobs being sent to other countries. With this tax bill, it helps employers improve the economy by investing in hiring for things that are not as crucial to the bottom line in the short term but do benefit them i years to come; such as new hiring training, research and more. The reason being is the tax on capital investments isn’t as painful and interns, entry level workers and more can come on board and contribute to the bottom line.

In a few years, these same employees will become the managers and leaders of the corporation. Providing more value not only to the company but the economy as a whole. This puts a smile on the municipality that they reside, consumer companies and more.

To sit down with myself or any other tax professionals, do not hesitate to email me.

The Tax Cuts and Jobs Act

The tax cuts and jobs act which was put into effect in 2017 and ushered in some amendments to a bunch of laws. What American taxpayers need to look out for when filing taxes in 2019 is a series to give you insight on the 2019 tax season.[bctt tweet=”Follow the 7-Part blog series: What American taxpayers need to look out for when filing taxes in 2019? Written by Jean-Désir Fils” username=”magnitax”] My job with this seven-part series is to make sure American taxpayers are prepared for the 2019 tax season. As I will always mention, this is not tax-advice and if you want to get in touch with a tax advisor; Shngli has a directory full of them. 

Tax Planning for 2019

Although it is already 2019, you probably feel like you’ve missed the ability to do tax planning. As I will break down in the retirement section, you are late but not out of luck. Tax planning can be a daunting task with everything going on around you but simple strategies are in front of you and most of the time an advisor need not apply. Executive and the challenges during tax season Our clients who are executives for their respective companies need to pay attention to this series as well. As many of you have read some of the tax deductions are changing; such as now you can only deduct 50% of those dinners to entertain new clientele. No worries you will have some new opportunities to put money back into your businesses bottom line.

Small Business owners should pay attention to their tax advisors advice more

I’m a Miami based founder, our city ranked 24th in terms of entrepreneurial growth activity according to a 2017 Kaufman Study.

Small-Business-owners-should-pay-attention-to-their-tax-advisors-advice-more

(Photo by Tom Szczerbowski/Getty Images)

When it comes to economic incentives and more, small Business owners should pay attention to their tax advisors advice more often. Furthermore, advisors should sit down with clients more often to not only gauge present but future needs as well. Many states and municipalities provide tax incentives to business owners that could change and the city’s economic and social climate.

Retirement planning for you and your family

Retirement has become multi-faceted for a number of years because we now have so many different generations of retirees. Phased Retirement is here, according to The New Rules of Retirements by Robert C. Carlson, a managing member of Carlson Wealth Advisors, L.L.C., he coined the phrase, phased retirement. Phased retirement is where a person in his or her sixties leaves an employer after working for 10 plus years.[bctt tweet=”Phased retirement is where a person in his or her sixties leaves an employer after working for 10 plus years.” username=”Magnitax”] This person takes about six months to a year of relaxing or taking on new extracurricular activities before figuring out how they will live the remainder of their lives.

Real Estate for 2019 and beyond

Whether you are in the real estate market as a buyer or investor, 2019 will be a year to focus on many facets of the industry. From the Federal Reserve raising rates to your local market, here are a few things to keep in mind because of increased interest rates in terms of real estate:

  • Fewer houses on the market
  • Difficulty in financing for less qualified buyers
  • More, just pick up a simple economics book for a refresher

Data in the real estate industry

“There is relatively little rigorous, economics-based focus on commercial real estate development: the actual process of capital formation, where and how financial capital is converted into the physical capital that greatly impacts cities, society, the environment, and the economy.

A very exciting frontier is to link the economic and financial perspective of real estate development to the physical perspective of the architects and urban designers. We could use the development of both theory and empirics.” David Geltner Professor at MIT

The future of Magnitax and our involvement with taxes

Magnitax.com has partnered with Shngli.comto assemble a group of tax advisors to work with business owners in all industries. From tax-preparation, auditing and representation in front of the Internal Revenue Service (IRS), we plan to be there for our clients. If you have any questions, please do not hesitate to reach out to us.