So who did their taxes, did you end up in the red?

[Rash]

We never do ours until October.

But the "tax cut" didn't help us, especially once the promised "pass-through" entity deduction was taken out of the final bill.

Wait ... what? Where did you see that the pass through deduction was taken out?

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[CAL Captain]

Wait ... what? Where did you see that the pass through deduction was taken out?

Pass-through LLCs like doctors, lawyers, architects, etc where the skill of the individual is the basis of the business do not get the 15% pass-through credit. Many news articles on this.

 

[Rash]

Pass-through LLCs like doctors, lawyers, architects, etc where the skill of the individual is the basis of the business do not get the 15% pass-through credit. Many news articles on this.

Actually, they do get it. But taxable income has to be below 315,000 married filing joinrly. After that it is phased out. And it’s 20%, not 15.

https://www.whitecoatinvestor.com/section-199a-pass-thru-business-deduction-tips-for-physicians/

 

[JIMJC]

I haven't done mine yet but everyone I know is doing worse this year and some very bad, what happened to the tax cut, oh that's right it only went to the rich and corps.

 

[CAL Captain]

I haven't done mine yet but everyone I know is doing worse this year and some very bad, what happened to the tax cut, oh that's right it only went to the rich and corps.

Right.

 

[CAL Captain]

Actually, they do get it. But taxable income has to be below 315,000 married filing joinrly. After that it is phased out. And it’s 20%, not 15.

https://www.whitecoatinvestor.com/section-199a-pass-thru-business-deduction-tips-for-physicians/

Thanks for that. The last time I checked was probably late spring/early summer of last year and, back then, the new guidelines hadn’t been issued. I know my CPA would have caught me up but I haven’t talked to her since the tax cut was originally passed.

 

[Rash]

Thanks for that. The last time I checked was probably late spring/early summer of last year and, back then, the new guidelines hadn’t been issued. I know my CPA would have caught me up but I haven’t talked to her since the tax cut was originally passed.

No prob - you scared me there for a sec.

 

[ugstang17]

I haven't done mine yet but everyone I know is doing worse this year and some very bad, what happened to the tax cut, oh that's right it only went to the rich and corps.

Guess you didn't read my post and I sure as hell ain't rich. I grossed almost the same in 2018 as I did in 2017. While my return was $1000 less for 2018 than 2017, my with holding was lower throughout 2018 v 2017 by a total of $1800 making me a net $800 to the better over 2017 overall. That's with no changes on my with holding statement with regard to status or dependents. I'm a factory worker, not a lawyer, doctor, corp exec, Hollywood movie star, pro NBA player, or business owner. So now you know of one middle class blue collar that did yield back more overall. If you review your return verses what you actually got back you might...that is might find the same thing. Admitting it however depending on your view may be the more difficult part.

 

[CAL Captain]

No prob - you scared me there for a sec.

I’ll bet I did!

I try not to think about taxes... EVER. My CPA would have set me straight but that wasn’t going to be until October.

Your news will help to partially make up for the $10k SALT deduction cap.

 

[Rash]

I’ll bet I did!

I try not to think about taxes... EVER. My CPA would have set me straight but that wasn’t going to be until October.

Your news will help to partially make up for the $10k SALT deduction cap.

The standard deduction is so much higher now that many won’t need to itemize thus the SALT limitations doesn’t come into play.

I do my own taxes - too many instances of having to correct an accountants mistake.

 

[CAL Captain]

The standard deduction is so much higher now that many won’t need to itemize thus the SALT limitations doesn’t come into play.

I do my own taxes - too many instances of having to correct an accountants mistake.

Fortunately (or unfortunately, depending on how you look at it) my business is fairly complex and it does involve a lot of sometimes arcane deductions.

I could try to do my own taxes… but I don’t want to end up in federal prison for the rest of my life.

 

[Cobra Jet]

Fortunately (or unfortunately, depending on how you look at it) my business is fairly complex and it does involve a lot of sometimes arcane deductions.

I could try to do my own taxes… but I don’t want to end up in federal prison for the rest of my life.

A lot of the online Tax services are actually quite “easy” to use and understand, even for those who are not familiar with the “hows” of doing your own taxes. You can even totally mock up your taxes without having to pay anything at all - the only time you pay is if you agree with your input and final displayed results.

Some “CPA’s” and “tax pros” actually use the same or similar “walk through” software these days, there’s not many that do physical pen to paper and calculator workups. But they won’t tell you that, nor will they reduce their fees....

I’m sure some people have reliable Tax Accountants they have been going to for years, which is great - but the majority of the population just picks and chooses a local brick and mortar CPA/Tax Service and ends up being taken advantage of when it comes to filing time. Imagine paying $300+ to have one of those places do your taxes, then finding out you owe the Fed and State money on top of the filing fee... when if done online, the filing fee could have been $50 or less.

Just saying...

 

[Blue Moon]

My USAF retirement checks were a just a little bigger this year and I got just a little more back than last year when I filed yesterday. Win win.

 

[CAL Captain]

A lot of the online Tax services are actually quite “easy” to use and understand, even for those who are not familiar with the “hows” of doing your own taxes. You can even totally mock up your taxes without having to pay anything at all - the only time you pay is if you agree with your input and final displayed results.

Some “CPA’s” and “tax pros” actually use the same or similar “walk through” software these days, there’s not many that do physical pen to paper and calculator workups. But they won’t tell you that, nor will they reduce their fees....

I’m sure some people have reliable Tax Accountants they have been going to for years, which is great - but the majority of the population just picks and chooses a local brick and mortar CPA/Tax Service and ends up being taken advantage of when it comes to filing time. Imagine paying $300+ to have one of those places do your taxes, then finding out you owe the Fed and State money on top of the filing fee... when if done online, the filing fee could have been $50 or less.

Just saying...

I appreciate the thought but our LLC tax situation IS actually fairly complex and not something I would trust to doing it myself under any circumstances. Plus I have a strategic business relationship with my CPA.

I actually used TurboTax up to about 15 years ago.

 

[carcinoid]

I haven't done mine yet but everyone I know is doing worse this year and some very bad, what happened to the tax cut, oh that's right it only went to the rich and corps.

Are they basing this off of their refund amount or total tax burden? I've heard several people complain about not getting as much of a refund and decrying the new laws, even though they're paying less in total. Usually the same people who complain about "evil corporations" taking all of the money and complaining about not having enough themselves, even though they have cash for every new video game, a new car, a new smartphone, weed and cigarettes.

My tax guy is supposed to give me a comparison of what this years taxes would have been under the old rules. I look forward to seeing it.

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