Blog | WM. F. Horne & Company, PLLC


Tax Cuts and Job Act Summary




The recently enacted Tax Cuts and Jobs Act (TCJA) is a sweeping tax package. Here is a look at some of the more important elements of the new law.  This is not a comprehensive review, but rather a summary of those items that we feel are the most relevant to our individual and business clients.


Individual Provisions


While the TCJA will lower rates at many income levels, determining the overall impact on…

  • 4 Jan, 2018
  • Jacqueline Cran
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When Business Meals and Entertainment Are Deductible


business meals

Article Highlights:

  • Ordinary and Necessary
  • Directly-Related Test
  • Associated-With Test
  • Lavish
  • Substantiation Requirements

An often asked question is: are meals and entertainment deductible in the course of one’s business, and if so, under what circumstances? This type of expense requires you to comply with some pretty complicated qualifications, and if you can jump through the hoops, the expenses may be deductible in certain cases.

But before we go too far, know that unreimbursed meal expenses incurred while…

  • 29 Nov, 2017
  • Jacqueline Cran
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House Releases Tax Cuts & Jobs Act – See How It Might Affect Your Business


tax reform business

Article Highlights

  • Maximum Tax Rate on Business Income of Individuals
  • Business Expensing
  • Sec 179
  • Business Interest Expense Limitation
  • Business Entertainment
  • Sec 1031 Exchanges
  • Self-Created Property
  • Domestic Production Deduction
  • Business Credits
  • Corporate Tax Rate
  • Personal Service Corporation Tax Rate
  • Net Operating Loss

This is part 2 of a 2-part series on the proposed Tax Cuts & Jobs Act and generally covers the provisions applying to small businesses and self-employed taxpayers. Part 1 covered the individual taxpayer provisions

The House Ways and Means Committee…

  • 22 Nov, 2017
  • Jacqueline Cran
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Tax Cuts and Jobs Act – See How It Would Affect You


tax reform


Article Highlights

  • Deductions
  • Exemptions
  • Tax Rates
  • Family and Child Tax Credits
  • Education Benefits
  • Plug-In Electric-Vehicle Credit
  • Alimony
  • Home-Sale Gain Exclusion
  • Moving Expenses
  • Estate Taxes


This is Part 1 of 2 in a series on the proposed Tax Cuts and Jobs Act. This part covers the provisions that apply to individual taxpayers. Part 2 covers the small-business provisions.

The House of Representatives Way and Means Committee has finally released their version of the long-promised tax-reform legislation. This is the first step…

  • 9 Nov, 2017
  • Jacqueline Cran
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Convert Your Traditional IRA to a Roth IRA Too Soon?


ira convert

Article Highlight: 

  • Converting Traditional IRA Funds to a Roth IRA
  • Recharacterizations – Undoing the Conversion
  • Benefits of Recharacterizations
  • Recharacterization Timing

When you convert a traditional IRA to a Roth IRA, you have to pay the tax on the conversion.   However, individuals frequently do this so they can take advantage of future tax-free accumulations. Distributions from Roth IRAs are generally tax free, including any earnings (accumulations) while the account is a Roth account.

Are you considering…

  • 30 Oct, 2017
  • Jacqueline Cran
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Ignoring Those IRS Notices Only Makes It Worse

ignoring IRS notice

Article Highlights: 

  • IRS Informational Forms
  • Computer Matching
  • IRS Correspondence
  • Procrastination
  • Need for Professional Review

Remember those 1099s, W-2s, K-1s and other informational forms you receive each year reporting your interest, dividends, sales, wages, retirement income, IRA withdrawals, health insurance forms and other items having to do with your tax return? Well, the IRS also gets this information and feeds it into its computers. Thanks to modern computer technology, the IRS is able to match…

  • 26 Oct, 2017
  • Jacqueline Cran
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Hiring the Right Employee Can Get You a Big Tax Credit




Article Highlights: 

  • Potential Credit
  • Eligible Employees
  • Credit Determination
  • Certification Process
  • Other Issues

If you are an employer who is willing to help disadvantaged individuals, you could benefit from a substantial federal tax credit. Hiring certain new employees can qualify you for the work opportunity tax credit (WOTC).

The WOTC is typically worth up to $2,400 for each eligible employee, but it can be worth up to $9,600 for certain veterans and up to $9,000 for “long-term family…

  • 16 Oct, 2017
  • Jacqueline Cran
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What is an RMD?



Article Highlights:


  • Required Minimum Distributions
  • When the Distributions Must Begin
  • RMD Distribution Tables
  • Figuring the Amount of the Distribution
  • Beneficiaries
  • IRA-to-Charity Transfers

Required minimum distributions (RMDs) are required distributions from qualified retirement plans. RMDs are commonly associated with traditional IRAs, but they also apply to 401(k)s and SEP IRAs. The tax code does not allow taxpayers to keep funds in their qualified retirement plans indefinitely. Eventually, assets must be distributed, and taxes must be paid on those…

  • 12 Oct, 2017
  • Jacqueline Cran
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Natural Disaster Charity Volunteer Tax Breaks




Article Highlights: 

  • Away-from-home travel
  • Lodging and meals
  • Entertaining for charity
  • Automobile travel
  • Uniforms
  • Substantiation requirements

If you volunteered your time for a charity in the aftermath of a natural disaster, you probably qualify for some tax breaks. Although no tax deduction is allowed for the value of services performed for a qualified charity or federal, state or local governmental agency, some deductions are permitted for out-of-pocket costs incurred while performing the services. The following are some examples:

  • Away-from-home…
  • 9 Oct, 2017
  • Jacqueline Cran
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Taking Advantage of Tax-Free Gifting


taxfree gifting


Article Highlights:

  • Lifetime exclusion
  • Annual exclusion
  • Medical exception
  • Education exception
  • Gifting techniques

If you are fortunate enough to have a large estate – one large enough to be subject to the estate tax upon your death – you might be considering ways to give away some of your wealth to your family and loved ones now, thereby reducing the estate tax when you pass on.

Frequently, taxpayers think that gifts of cash, securities, or other assets…

  • 25 Sep, 2017
  • Jacqueline Cran
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