Tax

How the Tax Cuts and Jobs Act Impacts the Real Estate Industry

The Tax Cuts and Jobs act made multiple changes to tax regulations impacting the real estate industry. Highlights of some of the changes are summarized below.  1031 Exchanges Section 1031 exchanges are now limited to only exchanges of real property not held primarily for sale. It only includes property held for use in a trade…

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Maryland Registered Apprenticeship Tax Credit

The Maryland Apprenticeship Tax Credit is a tax credit given to Registered Apprenticeship Sponsors and/or employers who employ an eligible Registered Apprentice(s).  The credit is worth up to $1,000 per each eligible Registered Apprentice. As with any credit Maryland provides, there are always limitations. The credit may only be taken against the state income tax…

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IRS Updates Withholding Tables for Tax Reform

As part of its ongoing efforts to help implement the new tax legislation, the IRS has released an updated version of the tables used to calculate 2018 income-tax withholding for individuals. The new calculations reflect the changes to standard deductions and tax brackets, as well as the repeal of personal exemptions. The guidance released by…

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HSA Plans Endangered in Maryland

A new law passed in Maryland may endanger the future of HSA plans in the state. A Health Savings Account (HSA) provides significant tax benefits for saving toward healthcare expenses. Contributions can be deducted or excluded from taxable income and any earnings on the account are also tax free. The money in the account must…

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New deduction on pass-through income created by the recent Tax Act

The recent Tax Act creates a new deduction on pass-through income. It should provide a substantial tax benefit to individuals with “qualified business income” from a partnership, S corporation, LLC, or sole proprietorship. It is also one of the more complicated provisions in the new law. The deduction is 20% of your “qualified business income…

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IRS Weighs in on Deducting Prepaid Real Estate Taxes

Since the passing of the Tax Cuts and Jobs Act of 2017 taxpayers have been scrambling to take advantage of deductions that expire at the end of the year or are subject to limitation in 2018 and forward.  Much has been discussed in the tax community and on the internet about prepaying 2018 real estate…

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Meals and Entertainment Changes Under Tax Reform

In general, the new tax Act provides for stricter limits on the deductibility of business meals and entertainment expenses. Under the Act entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under the specific exceptions in Code Section 274(e). One of those exceptions is for “expenses for recreation, social, or…

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Tax Reform – 2017 Planning Opportunities

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017.  The Act generally provides for lower tax rates for individuals and businesses while eliminating certain deductions. See the Tax Alert on our website for more details on specific provisions included in the new Act.  While most of the…

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