2018 endeth soon, shopping frenzy. Kingcreek tax edition

[Kingcreek]

I've been trying to get some firm (ish) numbers from my Cpa for 3 weeks. Seems the new tax changes are still not well defined or understood. The tax software that all the number Wizards use is not plugged in yet or something.
I made it clear I had some concerns and I want to be near the top of any brackets or thresholds- not just over.
Got a rather frantic call from him yesterday asking how much cash I can drop into HSA and IRA. Also suggests I start shopping for some expense items I can take in one year. Business expenses, farm expenses, etc. a couple of 501(c)3s are going to like me. Looks like I might finally get that hydro grapple and 3rd function kit for the tractor yay!
My wife is the financial side of our team and she is not at all happy about the hit to our savings cash on hand but she also understands if we don't buy deductible stuff with it, we will have to give it to the gubmint anyway.
Never found myself quite in this position before.
 

[K Frame]

I have NO clue what the tax laws are going to do to me. I THINK I'm going to be a bit better off, but I'm not sure.

Right now I think I'm going to be able to deduct about $8,000 in unreimbursed executor and estate expenses for what I fronted to keep my Mom's estate afloat, but it's complicated by the fact that I was on the mortgage note (but not the deed).

[Kingcreek]

My wife has been saving for a kitchen remodel and a winter vacation. She is sad. I told her I think we can still swing a February or March Florida trip. And maybe her kitchen upgrade next fall. It's real hard to manage these things when the accountants don't even know what is happening.

[BobR]

I have NO clue what the tax laws are going to do to me. I THINK I'm going to be a bit better off, but I'm not sure.

Right now I think I'm going to be able to deduct about $8,000 in unreimbursed executor and estate expenses for what I fronted to keep my Mom's estate afloat, but it's complicated by the fact that I was on the mortgage note (but not the deed).

Thanks for posting this, I would have never thought of executor expenses for tax purposes. As it is I am talking to my accountant today to go over these types of things.

bob

[K Frame]

Thanks for posting this, I would have never thought of executor expenses for tax purposes. As it is I am talking to my accountant today to go over these types of things.

bob

Let me know what he says. What I'm finding is very... vague, and deals mainly with incorporated estate agents (attorneys, CPAs, etc.)

I'm going to ask the useless lump of lump attorney who's probating Mom's estate. I expect that he'll launch into a long explanation about how he's the estate's attorney, he's not my attorney nor a CPA blah blah blah blah... Yeah, Pete, I get that. I'm asking hypothetically, so answer hypothetically.

For me it's also complicated by the fact that I got partial reimbursement this year, and won't get final reimbursement until next year when the estate finally closes.

[Scout26]

I've been trying to get some firm (ish) numbers from my Cpa for 3 weeks. Seems the new tax changes are still not well defined or understood. The tax software that all the number Wizards use is not plugged in yet or something.

I finished training on the new tax law and JH's software two weeks ago.  Only any potential changes to tax laws in the lame duck session, would result in anything "not well defined or understood".  The law has been on the books for over a year.

I made it clear I had some concerns and I want to be near the top of any brackets or thresholds- not just over.
Got a rather frantic call from him yesterday asking how much cash I can drop into HSA and IRA.

 

You have until 15 April 2019 to contribute to your (non-Roth) IRA's.  Your age and income (if you have a 401k at work) will determine what your maximum deductible amounts are. 

Also suggests I start shopping for some expense items I can take in one year. Business expenses, farm expenses, etc. a couple of 501(c)3s are going to like me. Looks like I might finally get that hydro grapple and 3rd function kit for the tractor yay!
My wife is the financial side of our team and she is not at all happy about the hit to our savings cash on hand but she also understands if we don't buy deductible stuff with it, we will have to give it to the gubmint anyway.
Never found myself quite in this position before.
 

Be careful.  Business expenses are deductible.  Employee Business expenses are NOT anymore.   And yes, certain purchases can be written off in year one as opposed to depreciated over several.   However, computer and related equipment are no longer considered as expenses.

Sounds like your CPA is WAAAAAAYYYYYYY behind the power curve.  We were providing our clients with advice and recommendations for 2018 tax strategies when we did their 2017 returns LAST SPRING.

[lupinus]

I finished training on the new tax law and JH's software two weeks ago.  Only any potential changes to tax laws in the lame duck session, would result in anything "not well defined or understood".  The law has been on the books for over a year.
 

You have until 15 April 2019 to contribute to your (non-Roth) IRA's.  Your age and income (if you have a 401k at work) will determine what your maximum deductible amounts are. 

Be careful.  Business expenses are deductible.  Employee Business expenses are NOT anymore.   And yes, certain purchases can be written off in year one as opposed to depreciated over several.   However, computer and related equipment are no longer considered as expenses.

Sounds like your CPA is WAAAAAAYYYYYYY behind the power curve.  We were providing our clients with advice and recommendations for 2018 tax strategies when we did their 2017 returns LAST SPRING.

Finish your move to SC already, I'm planning to startup a side business next year and need such services 🤣

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[Ron]

But then who is going to pay for all the state pension obligations?