IRS Redesigning Taxpayer Notices to Make Them Easier to Understand

WHAT IS TAX ABATEMENT?

Most residential and commercial property buyers are always on the lookout for programs that can ease their financial burden. One such program is tax abatement. This tax program offers buyers an incentive that’s hard to resist. It allows them to enjoy reduced property taxes or long-term breaks on their property tax bill. Either way, they get to save money, which undoubtedly impacts their bottom line, but in a positive way. However, this program is only offered by specific states and cities, so it’s wise to do some research. With that out of the way, let’s learn more about tax abatement - what it is, how it works, and its benefits.

HOW TO CALCULATE PRETAX INCOME

US companies are required to pay taxes on their profits to the Internal Revenue Service (IRS) each year and follow Generally Accepted Accounting Principles (GAAP).

Reporting profits and income in financial statements and tax returns is not always the same. This is due to each body having its own rules governing how to calculate income. Furthermore, businesses may use different accounting methods for tax returns and income statements.

In this article, we explore pretax income, how it is calculated, its difference from taxable income, and why it is essential to know how to calculate it.

Why Tax Reform is not easy

Client always asking with a grin "won't the new tax law put you out of business?" Which I always reply "The smart cleints will always seek professional help". Here is why. The recent increase in standard deductions has put the industries, that rely on people's motivation to get a tax deduction, in panic mode. Charities, mortgage brokers, realtors, investment advisors and the like hate the fact a larger standard deduction make people feel that giving to charity or owning a home is no longer a benefit because they can't write it off. So what happens, as it has always had, the special interests and lobbyists for these affected groups run off to Washington to get their tax advantage back First in line appears to be the charitable organizations. I can imagine that investment advisors, airline industry and realtors are not too far behind. So all of this talk about "reform" is much ado about nothing.