Tax Reform Sparks Interest In Life Insurance and Secondary Markets

From Forbes.com

With many Americans reviewing their financial situation after the passage of the Tax Cuts and Jobs Act, it is important that any life insurance needs are also reviewed at this time. The reality is that many people do not think about life insurance as a financial asset and don’t review their life insurance needs frequently enough. Individual life insurance policies consist of over $12 trillion in the United States. But many Americans are not well informed about their life insurance needs, policy specifics, or planning options. As your finances change, as your family grows, or when laws change, it is important to review your existing life insurance and to see if you have a heightened need for any more insurance.

The Tax Cuts and Jobs Act made significant changes that impact the use of life insurance as an estate protection vehicle and modified the tax ramifications of selling a life insurance policy on the secondary market as part of a life settlement. From a fundamental life insurance planning standpoint, these changes reduced the need for some individuals to have life insurance to protect an estate from federal estate taxes and improved the tax situation surrounding the sale of a life insurance policy.

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75 Items You May Be Able to Deduct from Your Taxes

From Entrepreneur.com

One way to save money each year is to find legitimate tax write-offs that intersect both personal and business expenses. [...] Surprisingly, there isn't some master list included in the Internal Revenue Code or provided by the Internal Revenue Service. There is simply the tax principle set forth in Code Section 62 that states a valid write-off is any expense incurred in the production of income. Each deduction then has its own rules.

[...] With a small-business venture in your life and on your tax return, you may be able to convert some personal expenses to business expenses, as long as you have the proper business purpose for that expense.

[...] Consult this list of 75 possible tax deductions for business owners. It's just a start and not every one of these items is always a legitimate deduction. For example, you may be able to deduct entertainment expenses, but only when entertaining a client, customer or employee, while also meeting particular IRS rules.

 

 

New Tax Law Could Make Divorces More Difficult

From Bloomberg

  • New tax law prohibits deduction of alimony, starting in 2019

  • More cases may wind up in court as an incentive is eliminated

President Donald Trump’s tax law could make divorce an even more miserable experience, according to a new survey of the nation’s top matrimonial attorneys.

Almost two thirds of respondents said they expect divorce negotiations to become more acrimonious following a change to the tax treatment of alimony, a poll by the American Academy of Matrimonial Lawyers showed. The new law includes a controversial provision that scraps the tax break divorcees get for paying alimony -- starting for divorces finalized next year.

Battles will ensue since alimony payers will have less of a tax incentive to be generous to their former spouses. The provision allows recipients to omit the alimony they receive from their taxable income, but divorce lawyers don’t expect that to offset the loss from a lower payout. The change could also have lasting consequences for child support, which is often calculated in tandem with alimony.

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How Does The New Limitation On Deducting Business Interest Expense Work?

From FORBES

If you tuned in to the President's State of the Union address last week, you surely noticed that the recently enacted Tax Cuts and Jobs Act has been earmarked as the elixir for all that ails America. Soon enough, assembly line workers and supermarket cashiers will be lighting cigars with $100 bills -- all because $1.5 trillion in corporate and individual tax cuts have been placed on the ol' national credit card.

And while that may come to pass, it is important to remember that in any tax bill, while the good news gets the headlines, there is always more to the story.  

For example: there are over $4 trillion in tax cuts contained within the Act.  But remember: because Republicans chose to use the streamlined budget reconciliation process to pass the bill without a single vote from a Democrat, their hands were tied from a fiscal perspective: the net tax cuts could not exceed $1.5 trillion over the next ten years.

So how did Republicans get $4 trillion in tax cuts to fit within a $1.5 trillion-sized box? By offsetting some of the cuts with tax increases.

Think about the business side of the Act: The corporate rate was reduced from 35% to 21%, a move that ALONE would amount to a $1.3 trillion tax cut over the next decade. That's right: the tax break resulting from the corporate rate reduction, in isolation, nearly matched the total cuts permitted by the budget reconciliation process.

The net business cuts, however, amounted to only $650 billion. This means that Congress found $650 billion in revenue raisers on the business side. Where are these increases coming from?

Read the whole article here

 

Five Views On What Trump's Tax Cuts Mean For Business Leaders (Forbes)

As the deadline for filing taxes approaches, both entrepreneurs and their employees are wondering how the tax bill Congress passed and President Trump recently signed into law will affect their returns next year. Wherever you may fall on the political spectrum, there’s no question that the changes introduced by the new law could have a significant impact on how much you owe the government — or how much the government owes you.

While most economists agree that the decrease in corporate taxes from 35 percent to 21 percent is likely to increase business investments, it’s unclear how much of the increased profit margins will go to workers. The changes in the tax law could save businesses tens of thousands of dollars — some far more — but it leaves the decision of how to use these savings up to business leaders. Some of the money could go toward year-end bonuses, but other options could be hiring additional employees or investing in newer technologies.

For entrepreneurs looking to grow their businesses, the tax law is likely a welcome opportunity to reinvest in their projects, whether it’s into their employees, equipment, advertising, or another area entirely. Here’s what a few entrepreneurs had to say about it.

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U.S. Senate leaders reach $300 billion federal spending deal

From Reuters

The U.S. Senate, in a rare display of bipartisanship, on Wednesday reached a two-year budget deal to raise federal spending by almost $300 billion, in an attempt to end the kind of squabbling over fiscal issues that has plagued Washington for years.

The agreement, announced by both the Republican and Democratic leaders of the Senate, would lift caps on defense funding and some domestic government spending. Along with President Donald Trump’s tax cuts approved by Congress in December, the new round of spending would further add to the bulging federal deficit.

“This bill is the product of extensive negotiations among congressional leaders and the White House,” Senate Majority Leader Mitch McConnell, a Republican, said on the Senate floor. “We worked hard to find common ground and remained focused on serving the American people.”

The plan will need to be passed in the House of Representatives and the Senate, both controlled by Trump’s fellow Republicans, before going to the president to sign.

· Personal Information Care over the Internet

Personal Information over the internet is much more important and delicate than what we may think. Be aware of how you can manage and keep safe your data!

La información personal en el internet es mucho más importante y delicada de lo que podríamos creer. ¡Esté al tanto de cómo maneja y mantiene a seguros sus datos!

https://www.dhs.gov/blog/2018/01/26/take-steps-own-your-online-presence

· Apple Inc.'s Overseas Cash Back to US

After Tax Cut, Apple Inc. said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and spend tens of billions on domestic jobs, manufacturing and data centers in the coming years.

Luego de la Reforma Tributaria, Apple Inc dice que traerá miles de millones de dólares de vuelta a los EEUU, pagando impuestos sobre ese dinero y gastando cientos de miles de millones en trabajos domésticos, manufactura y centros de datos en los años venideros. 

https://www.bloomberg.com/news/articles/2018-01-17/apple-expects-38-billion-tax-bill-on-overseas-repatriated-cash