LEVITZACKS, Certified Public Accountants
(Tax, Audit, Estate Planning, Litigation, Consulting)
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Important Accounting Changes on the Horizon that May Impact Your Business...

Click here to read how this change may impact your organization.

Click here to download a summary of the AICPA's Working Group's current issues and their status.

The enactment of the Tax Cuts and Jobs Act in late 2017 (TCJA) was a game changer.  We are well-versed in what the rules of the TCJA purport to be, but there is still much uncertainty in some of the implementation details.  Guidance from the IRS continues to trickle in and with each installment of pronouncements more planning opportunities become apparent, even as consensus among tax advisors about the “real rules” of the game become more established.  The year-end tax planning guides can provide a general overview of major areas to consider as tailored to Individuals, Investors, and Businesses.  Because we stay focused on continuing developments, including potential legislative changes and IRS pronouncements, we encourage you to both check our website at lz-cpa.com/newsletter.html and contact us about any special areas of your concern.

As a result of the TCJA, payroll withholding tables were revised earlier this year.  In some situations, it may be prudent to revisit your claimed withholding exemptions and our year-end projections can assist in that effort.  In addition, there are enhanced deferral techniques, state tax minimization strategies, novel estate planning techniques that combine estate tax minimization with major income tax savings for future generations, and other great ideas we look forward to sharing as they may apply to your unique situations that we encounter.  As thought leaders, we strive to anticipate the next moves of the game in these and several other areas.

In the meantime, we hope you find this year’s general tax planning brochure beneficial, if nothing more than to spark interest in seeking clarification about how the new and existing rules are applied to you.  We look forward to continuing to provide quality tax preparation and exceptional consulting services.


Senate tax writers on Capitol Hill continue to discuss bipartisan retirement savings bills as the House gears up for a vote on a related tax measure.


President Donald Trump and Democratic congressional leaders have agreed to develop a $2 trillion infrastructure plan, according to Senate Minority Leader Chuck Schumer, D-N.Y.


Highly anticipated proposed regulations have been issued on the withholding required with respect to the disposition of certain partnership interests. The proposed regulations affect certain foreign persons that recognize gain or loss on the disposition of an interest in a partnership that is engaged in a trade or business in the United States, and persons that acquire those interests. Also affected are partnerships that directly or indirectly have foreign partners.


Proposed regulations provide rules on the attribution of ownership of stock or other interests for determining whether a person is a related person with respect to a controlled foreign corporation (CFC) under the foreign base company sales income rules.


Final regulations have been issued on transactions of U.S. taxpayers that have qualified business units (QBUs) with functional currency other than the U.S. dollar.


Medicaid waiver payments were earned income, even though IRS Notice 2014-7 treated them as “difficulty of care” foster care payments that were excluded from gross income. The Tax Court held that excluding the payments from earned income would improperly deny the taxpayers’ earned income credit and the additional child tax credit.


The IRS has released the 2018 optional standard mileage rates to be used to calculate the deductible costs of operating an automobile for business, medical, moving and charitable purposes. Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup of panel truck will be:

  • 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017);
  • 18 cents per mile for medical and moving expenses (up from 17 cents in 2017); and
  • 14 cents per mile for miles driven for charitable purposes (permanently set by statute at 14 cents).

Comment. A taxpayer may not use the business standard mileage rate after using a depreciation method under Code Sec. 168 or after claiming the Code Sec. 179 deduction for that vehicle. A taxpayer may not use the business rate for more than four vehicles at a time. As a result, business owners have a choice for their vehicles: take the standard mileage rate, or “itemize” each part of the expense (gas, tolls, insurance, etc., and depreciation).


The start of a New Year presents a time to reflect on the past 12 months and, based on what has gone before, predict what may happen next. Here is a list of the top 10 developments from 2017 that may prove particularly important as we move forward into the New Year:


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