How to Keep More of Your Money!
The new tax reform law has brought the most sweeping legal changes regarding tax since 1986. While many long held, tried and true strategies to save tax are no longer relevant, there are however, several new opportunities to save tax. We are expecting more winners than losers as a result of these changes. 

Here are a few highlights of the new law that will affect many taxpayers.

  - New lower tax brackets for everyone
  - Qualified business income gets a 20% deduction from taxable income
  - Standard deduction is doubled and personal exemptions are gone
  - The marriage "penalty" is almost completely gone away
  - The child tax credit is doubled to $2,000 for children under age 17
  - For children over age 17, there is a new $500 credit available
  - Home equity loan interest is generally not deductible (certain allowances exist)
  - The medical expense deduction AGI threshold is reduced to 7.5%
  - The combined total of deductible state tax and property taxes is limited to $10,000
  - Unreimbursed employee expenses are no longer deductible
  - Moving expenses are generally no longer deductible
  - Casualty and theft losses aren't deductible unless in a federal disaster area
  - Obamacare individual mandate penalties are gone
  - The alternative minimum tax will affect many less taxpayers
  - The estate tax exemption is doubled
  - Most of the tax breaks will expire after 2025
  - The section 179 business asset expensing and bonus depreciation provisions are expanded
  - Business entertainment expenses are no longer deductible
  - The cash basis of accounting is now allowed for businesses up to $25 million in revenue

If you have any questions about how any of these provisions may affect you, please contact us for more information. We go to great lengths to legally minimize the tax liability for every client. Please don't take any action based upon the list above without talking to us first, as everyone's situation is unique.
Taxing Sales from Out of State Companies
Ecommerce is booming and many states are complaining about declining sales tax revenues due to the increase in online sales. 

For over 25 years, we've generally not had to pay sales tax when we buy products from companies that have their nexus outside of North Carolina. And, if you have a sales business in North Carolina, you didn't have to collect sales tax for other states. Now, however, all that is changing. 

Because of recent court ruling in the case of South Dakota v. Wayfair, Inc., the issue of nexus is losing relevance. The new rules that are being adopted by many states say that they want you to pay/collect sales tax for every state when the vendor has $100,000 sales in a particular state or 200 individual sales transactions in a particular state.

The rules created an extra sales tax burden for ecommerce consumers and vendors. The burden for small business sellers is especially egregious. Small companies don't generally have the technology to track the thresholds for every state. And, every state applies sales tax in different ways to different products and services and with differing rates. It will be very easy for small retailers with online sales to find themselves out of compliance and subjected to substantial sales tax penalties. 

For consumers, expect more and more online retailers to charge you sales tax. 

This ruling is a huge tax grab, and many small businesses will suffer and struggle with compliance.

If you have out of state sales that may be affected by this new law and have questions, please contact us.

Mailing Address:
P.O. Box 428
Stedman, NC 28391
Physical Location:
7233 Clinton Road
Stedman, NC 28391
Phone: 910-483-5696
Fax: 910-483-7868
Hours: Mon.-Thur. 9a-5p
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