2017 Tax Reform: tax treatment of alimony under the new law

Under the current rules, an individual who pays alimony or separate maintenance may deduct an amount equal to the alimony or separate maintenance payments paid during the year as an “above-the-line” deduction. (An “above-the-line” deduction, i.e., a deduction that a taxpayer need not itemize deductions to claim, is generally more valuable for the taxpayer than… Read more »

Banks, Insurers to Get Relief From Accounting Effects of New Tax Law

The FASB agreed to finalize a proposal it released in January that aims to alleviate concerns from banks and insurance companies about the accounting implications of the Tax Cuts and Jobs Act. The final update to U.S. GAAP will be optional for companies to apply, the board agreed. The FASB on February 7, 2018, fast-tracked… Read more »

SAPWG Update on INT 18-01: Updated Tax Estimates under the Tax Cuts and Jobs Act

On February 8, 2018, the Statutory Accounting Principles (E) Working Group (SAPWG) approved Interpretation 18-01, Updated Tax Estimates under the Tax and Jobs Act (INT 18-01). As noted in the interpretation, “reporting entities have been required to reflect various accounting adjustments in their financial statements” as a result of the Tax Cuts and Jobs Act… Read more »

Faster, Higher, Stronger in 2018: Taking Employee Wellness to Olympic Proportions

At Larson and Company, we believe in creating a healthy environment, because healthy things grow.  Larson & Company employees are a valuable asset to our growth as a firm and employee wellness is key, especially during the busy tax filing season.  Larson and Company chooses to sponsor a voluntary wellness program for all employees during… Read more »

Is home mortgage and home equity loan interest still deductible under the new law?

This article discusses the changes in the rules for deducting qualified residential interest, i.e., interest on your home mortgage, under the Tax Cuts and Jobs Act (the Act). Under the pre-Act rules, you could deduct interest on up to a total of $1 million of mortgage debt used to acquire your principal residence and a… Read more »

Business credit changes under the Tax Cuts and Jobs Act include new credit

The Tax Cuts and Jobs Act makes changes to the general business credit by adding a new component credit for paid family and medical leave, and changing two current component credits, i.e., the rehabilitation credit and the orphan drug credit. First, the Tax Cuts and Jobs Act introduces a new component credit for paid family… Read more »

Insurance Companies must maintain access to the Death Master File through a qualified ACAB audit

The Death Master File (DMF) is an official Government dataset of deceased citizens. The dataset contains over 85 million death records from 1936 to present. The data is distributed by the Department of Commerce National Technical Information Service (NTIS). In December 2013 the Bipartisan Budget Act became law which prohibits disclosure of DMF information during… Read more »

2017 Tax Cuts Act: Retirement Plans and IRAs

The Tax Cuts and Jobs Act modifies several provisions related to retirement plans and IRAs. These include the repeal of the special rule permitting recharacterization of Roth IRA conversions, an increase in the period during which a qualified plan loan offset amount may be rolled over, relief for qualified 2016 disaster distributions, and an increase… Read more »

2017 Tax Cuts Act: Tax Exempt Organizations

The Tax Cuts and Jobs Act is a sweeping tax reform package that impacts virtually all taxpayers, including tax exempt organizations. The final text as agreed on by Congress, does not modify or repeal the so-called “Johnson amendment” that generally restricts 501(c)(3) organizations from political campaign activity. The provision to revise reporting requirements for donor-advised… Read more »

2017 Tax Cuts Act: Contributions and Rollovers to ABLE Accounts

The Tax Cuts and Jobs Act makes modifications to ABLE accounts created by the Achieving a Better Life Experience Act of 2014. These changes, effective in 2018 through the year 2025, allow rollovers from 529 accounts into ABLE accounts, up to an amount equal to the annual gift tax exclusion; increase the annual contribution limit… Read more »