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Nanny Tax Threshold $2000 for 2017
You remember all the famous cases about politicians not reporting domestic employees for Social Security taxes? The unofficial term is the "nanny tax." The rule, as announced by the Social Security Administration, is quite simple. If you pay any individual domestic employee, such as a house cleaner gardener or babysitter less than $2000 per year, it does not have to be reported to the Social Security Administration and you do not have to collect and remit Social Security taxes. This is on a per employee basis. So, for example if you had one babysitter that you paid $1800 to during the course of the year and another one that you paid $1000, even though the combined total is $2800, more than $2000, you still do not have to report that. On the other hand if it were just one employee hired for $2800 you would have to report the entire $2800 and withhold Social Security and pay the employer's matching portion.
See the Social Security administration official announcement:
Today, Pres. Trump unveiled the general outline for his new tax plan. Yes, to my great amazement, he is talking about simplification of the Internal Revenue Code. I do not know if Congress will let this happen, but the compliance cost of federal and state taxes is far too high and has become a large impediment on business growth in the economy in general.
One way that simplification is being proposed is that there would be a reduction in the current seven tax brackets 23 tax brackets of 35%, 25% and 10%. Also itemize deductions, other than charitable donations and mortgage payments, would be eliminated. This means that medical deductions, state and local tax deductions, casualty and theft losses, and unreimbursed employee business expenses would be eliminated. As part of the simplification, there would be an elimination of the estate tax at the federal level. Although that would affect only a small amount of estates, it would eliminate tax planning for everyone's estate.
NJ Division of Taxation seizes Melange Cafe Holidays in Haddonfield are
Dreary without Melange @ Haddonfield
holidays approach us, we renew our quest for a delicious meal that awakens the
palate served in a relaxing atmosphere far removed from the hustle and bustle
of garish chain restaurants serving mediocre food slapped on a plate. As the
town of Haddonfield, NJ brings to life its Christmas shopping season filled
with candlelit streets, we are left without its shining star, Melange @
Haddonfield café. Why? Because Chef Joe Brown did not have an attorney that
understood his need to be a chef – and his struggles as a restaurateur. After
owning Melange Café in Cherry Hill, NJ and achieving much success, Chef Joe
Brown opened his Melange @ Haddonfield in 2008, eventually focusing full time
on the Haddonfield location and closing the Cherry Hill location.
moves and multiple issues that could have arisen (and obviously did arise),
Melange received a Division of Taxation J…
The TCJA temporarily expands bonus depreciation
The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file your 2017 tax return.
Pre-TCJA bonus depreciation
Under pre-TCJA law, for qualified new assets that your business placed in service in 2017, you can claim a 50% first-year bonus depreciation deduction. Used assets don’t qualify. This tax break is available for the cost of new computer systems, purchased software, vehicles, machinery, equipment, office furniture, etc.
In addition, 50% bonus depreciation can be claimed for qualified improvement property, which means any qualified improvement to the interior portion of a nonresidential building if the improvement is placed in service after the date the building is placed in s…