Tax Law Changes for Alimony

August 23rd, 2018

Alimony is deductible for all agreements made prior to 2018 and will be allowed for any agreements signed in 2018. All agreements signed after December 21, 2018 will not be deductible. This will most likely result in more settlements rather than paying maintenance and may lower overall divorce settlements.

Depreciation Changes

August 15th, 2018

Business purchasing equipment may deduct the entire cost of the equipment purchase if purchased after September 27, 2017 and December 31, 2022. These rules do not apply to real estate purchases or improvements to real estate. For companies Section 179 has been expanded to incorporate the previous changes.

Corporate Top Tax Rate Drops from 35% to 21%

August 7th, 2018

Pass through business including partnerships, limited liability companies, S-corporations and sole proprietorship who don’t pay corporate taxes or dividends and income is taxed on the personal income tax return can claim a 20% deduction if their taxable income is less than $315,000 for married taxpayers and $157,500 for single filers.