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Ryan & Ames CPAs 1800 Bayberry Court, Suite 201 Richmond, Virginia 23226 Office: 804-359-8111 Fax: 804-359-6116
We are always here to assist our clients with any financial questions they may have. We offer tips and advice in our yearly newsletter that can help you with your finances. Please contact us if you have any questions or need assistance.
  2018 Sales Tax Holiday

When is it?
August 3 - 5, 2018

What is it?
During the sales tax holiday, you can buy qualifying school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star™ and WaterSense™ products without paying sales tax.

What items are eligible?

  • Qualified school supplies ($20 or less per item)
  • Qualified clothing and footwear ($100 or less per item)
  • Hurricane and emergency preparedness products
  • Portable generators
    ($1,000 or less per item)
  • Gas-powered chainsaws ($350 or less per item)
  • Other specified hurricane preparedness items
    ($60 or less per item)
  • Qualifying Energy StarTM and WaterSenseTM products purchased
    for noncommercial home or personal use ($2,500 or less per item)

  • TIP: This is a great time to stock up on paper, pens, pencils, etc.!

    Detailed lists of qualifying items and more information for retailers can be found at tax.virginia.gov

      The New Tax Law and How It Affects You

    Under the new tax reform, Tax Cuts and Jobs Act, many changes are having an impact on individual taxpayers and businesses alike. As changes to corporate taxes are made permanent, individual tax provisions are temporary and will expire after 2025.
    Although the Act kept the seven income tax brackets, the tax rates are lower.

    Income Tax Rate
    Income Levels for Those Filing As:
    2018-2025 Single Married - Joint
    10% $0 - $9,525 $0 - $19,050
    12% $9,525 - $38,700 $19,050 - $77,400
    22% $38,700 - $82,500 $77,400 - $165,000
    24% $82,500 - $157,500 $165,000 - $315,000
    32% $157,500 - $200,000 $315,000 - $400,000
    35% $200,000 - $500,000 $400,000 - $600,000
    37% $500,000+ $600,000+

    The new tax plan nearly doubles the standard deduction for individual taxpayers. It increases from $6,350 to $12,000 for single filers and from $12,700 to $24,000 for married filing jointly filers. While the deductions for charitable contributions, retirement savings, and student loan interest are staying, itemized deductions including moving expenses, unreimbursed job expenses, tax preparation fees, personal exemptions, and subsidized parking and transit reimbursement for employees are eliminated. Members of the Armed Forces on active duty that move because of the military order can still take the deduction for moving expenses. The Act limited the deduction on mortgage interest to the first $750,000 of the loan and interest on home equity lines of credit can no longer be deducted. Current mortgage holders are not going to be affected by this change. Deductions for medical expenses are expanded and will allow the taxpayers to deduct medical expenses that are 7.5% or more of income. Before the change, the cutoff was 10% for those born after 1952. While Obamacare’s individual mandate,  a requirement to have health insurance, qualify for an exemption, or pay a fine, continues to apply for 2018, is repealed for post-2018 years. Child Tax Credit is also increased from $1,000 to $2,000 per qualified child. Parents can also use 529 savings plans – annual distributions of up to $10,000 – for tuition at private and religious K-12 schools or to fund expenses for home-schooled students. A $500 credit for each non-child dependent will help families caring for elderly parents.

      New Tax Law and Business Taxes

    The Tax Cuts and Jobs Act lowered the maximum corporate tax rate – C Corporations will pay a flat 21% rate, down from 35% top rate effective in 2017. This change will take effect for 2018 taxes and is permanent. Pass through businesses, including sole proprietors, S Corporations, partnerships, and limited liability companies got a new 20% deduction. This change also affects real estate companies, hedge funds, and private equity funds and will end after 2025. The deduction phases out for high earners in professional service fields, such as law, consulting, accounting, health, and financial services, once their income reaches $157,000 for singles and $315,000 for joint. The Act limits corporations’ ability to deduct interest expense to 30% of income. For the first four years income is going to be based on Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA). The tax changes will also allow business to deduct the cost of depreciable assets in one year instead of amortizing them over several years, although it does not apply to structures. Equipment must be purchased between September 27, 2018, and January 1, 2023, to qualify. The corporate AMT is eliminated by the new tax law.

      Did you receive a call from the IRS?
    Many individual taxpayers, businesses, and even government officials have become targets of individuals impersonating IRS officials. This scam most often takes place over the phone. The callers are usually aggressive, relentless, and ruthless. While striving to appear legitimate and authentic, they employ technology that shows “I.R.S.” on the caller identification screen, can provide a part of or all of your security number, and may provide a fake IRS badge number. In some cases, there are follow up calls that supposedly come from local police or prosecutors. A typical message provides this information: “Hello, we have been trying to reach you. This call is officially a final notice from the IRS, Internal Revenue Service. The reason of this call is to inform you that IRS is filing a lawsuit against you”. While the caller may sound convincing, do not fall for the threats. Note, what actions IRS would do to reach you and what information should not be shared, if you receive a suspicious call.  
    What IRS does not:
    • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
    • Demand that you pay taxes without the opportunity to question or appeal the amount they say you owe.
    • Threaten to bring in local police, immigration officers, or other law-enforcement to have you arrested for not paying. The IRS also cannot revoke your driver’s license, business license, or immigration status. Threats like these are common tactics scam artists use to trick victims into buying into their schemes.
    What to do if a caller says they are from the IRS?
    • Do not provide or confirm any personal information and do not engage with the caller.
    • The IRS initiates most contacts through regular mail delivery by the United States Postal Service and, before any further contact is established, will send you several letters (notices) in the mail. *more information on this topic can be found at irs.gov
    • If you received a letter or a notice from the IRS, please, do not ignore it and let us know. We will help you identify the issue and take appropriate action.


    Due Date Reminders:

    September 17, 2018
      Extended Corporate Income Tax Returns
      3rd Quarter Estimated Tax Payments
    October 1, 2018
      Extended Trust Tax Returns
      *Dates are different for fiscal year Trusts.
    October 15, 2018
      Extended Individual Income Tax Returns

    Please contact us if you have had any changes in your tax situation so we can assist you in projecting any potential tax liability that may arise or if you wish to discuss year-end tax planning.

    Please like Ryan & Ames CPA on Facebook and follow us on Instagram for latest updates and useful tips!

    We can do projections of your liability and planning for opportunities. When you would like us to do so, please contact us so that we can set up an appointment for a review of your tax planning.

    Ryan & Ames CPAs 1800 Bayberry Court, Suite 201 Richmond, Virginia 23226
    Office: 804-359-8111 Fax: 804-359-6116
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