New Individual, Estate and Trust Rate Schedules

With the new tax law changes, we will be posting a series of of updates outlining all the changes that will take place. If you have any questions, please contact your Linkenheimer CPA.

FOR MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES:

If taxable income is: The tax is:

Not over $19,050 10% of taxable income

Over $19,050 but not over $77,400 $1,905 plus 12% of the excess over $19,050

Over $77,400 but not over $165,000 $8,907 plus 22% of the excess over $77,400

Over $165,000 but not over $315,000 $28,179 plus 24% of the excess over $165,000

Over $315,000 but not over $400,000 $64,179 plus 32% of the excess over $315,000

Over $400,000 but not over $600,000 $91,379 plus 35% of the excess over $400,000

Over $600,000 $161,379 plus 37% of the excess over $600,000

FOR SINGLE INDIVIDUALS (OTHER THAN HEADS OF HOUSEHOLDS AND SURVIVING SPOUSES):

If taxable income is: The tax is:

Not over $9,525 10% of taxable income

Over $9,525 but not over $38,700 $952.50 plus 12% of the excess over $9,525

Over $38,700 but not over $82,500 $4,453.50 plus 22% of the excess over $38,700

Over $82,500 but not over $157,500 $14,089.50 plus 24% of the excess over $82,500

Over $157,500 but not over $200,000 $32,089.50 […]

By Linkenheimer LLP|2020-09-03T20:04:48+00:00January 5th, 2018|income tax, New Tax Laws, tax, tax planning|0 Comments

Disaster Relief Tax Seminar

Disaster Relief and Tax Consequences Seminar

November 28th, December 5, 12, 19th; 9-10:30am

Space is limited and will fill up quickly. Please RSVP below and let us know the day you would like to attend. We look forward to seeing you and answering any questions you might have. Breakfast will be provided and the seminar will be held at our office at 187 Concourse Blvd, Santa Rosa, CA. 95403.

Join the Linkenheimer team as we discuss the tax relief and implications of the local wildfires that have affected so many. There will be a discussion and Q&A time where we will answer your questions regarding your disaster relief options, IRS implications and more.

By Linkenheimer LLP|2020-09-03T20:04:50+00:00October 31st, 2017|Community, disaster, relief, tax|0 Comments

Payments to Employees Affected by the Local Fires

During these tragic times businesses may want to help employees affected by the local fires. The purpose of the following information is to highlight some tax efficient opportunities to help employees affected by the local fires which were declared a qualified disaster by President Trump. IRC section 139 allow employers to provide qualified disaster relief payments to employees that have incurred unreimbursed expenses due to a qualified disaster (such as the local fires) and have those payments excluded from the employees gross income and included as deductible expense for the business making the payment. For the payments to be considered qualified disaster relief payments, they should be for either items i. or ii. below, but only to the extent not already covered by insurance.

Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a disaster. This would include expenses related to loss of use.
Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or repair or replacement of its contents to the extent that the need for such repair, rehabilitation, or replacement is attributable to a qualified disaster.

Other items to point out:

To […]

By Linkenheimer LLP|2020-09-03T20:04:51+00:00October 19th, 2017|business, Community, disaster, Fire Relief Info, relief, tax|0 Comments

Tips for Tax Payers Traveling for Charity

During the summer, some taxpayers may travel because of their involvement with a qualified charity. These traveling taxpayers may be able to lower their taxes.

Here are some tax tips for taxpayers to use when deducting charity-related travel expenses:

Qualified Charities. For a taxpayer to deduct costs, they must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified, and do not need to apply to the IRS. A taxpayer should ask the group about its status before they donate. Taxpayers can also use the Select Check tool on IRS.gov to check a group’s status.
Out-of-Pocket Expenses. A taxpayer may be able to deduct some of their costs including travel. These out-of-pocket expenses must be necessary while the taxpayer is away from home. All costs must be:
- Unreimbursed,
- Directly connected with the services,
- Expenses the taxpayer had only because of the services the taxpayer gave, and
- Not personal, living or family expenses.
Genuine and Substantial Duty. The charity work the taxpayer is involved with has to be real and substantial throughout the trip. The taxpayer can’t deduct expenses if they only have nominal duties or do not […]

By Linkenheimer LLP|2020-09-03T20:04:54+00:00July 28th, 2017|charity, deduction, tax|0 Comments

Trump’s 2017 Tax Reform Unveiled

The White House issued President Trump’s goals and key features for tax reform, including cut corporate tax rates, flattened individual marginal income tax brackets, and repeal of the estate and alternative minimum taxes. He outlined these proposals in a one page bulletin which you can see below. The individual and business tax reform highlights include the following:

Proposed individual tax provisions:

Down from the current seven tax rates to three- 10%, 25% and a top rate of 35% (down from 39.6%).
Elimination of the Estate Tax.
Elimination of itemized deductions outside of mortgage interest and charitable contributions.
Repeal of the Alternative Minimum Tax (AMT).
Repeal of the 3.8% tax on net investment income.
Doubling of the standard deduction for married couples and individuals.
Tax relief for families and dependent care expenses.

Proposed business tax provisions:

Decreasing the top corporate tax rate to 15% (current top tax rate is 35%).
The 15% tax rate would apply to business income of pass-through entities such as partnerships, S corporations and limited liability companies.
A one time tax on business profits (at an unspecified tax rate) in foreign countries repatriated to the United States.
Introduction of a territorial tax system in place of the current worldwide tax regime.

Below is the one page bulletin released from the White House. […]

By Linkenheimer LLP|2020-09-03T20:04:56+00:00May 4th, 2017|tax, tax planning|0 Comments