Blog | WM. F. Horne & Company, PLLC


Has Tax Reform Taken Away Your Home Mortgage Interest Deduction?


mortgage interest


Article Highlights:


  • Background
  • New Limit
  • Equity Debt Interest
  • Interest Tracing
  • Refinancing


The Tax Cuts and Jobs Act of 2017, more commonly referred to as tax reform, substantially altered the itemized deduction for home mortgage interest and affects just about everyone who has been deducting their home mortgage interest as an itemized deduction on their tax returns.

Background: To fully understand the impact of the law changes, we need to compare the prior tax law to the…

  • 30 Jul, 2018
  • Jacqueline Cran
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Why am I Being Audited by the IRS?


With the 2018 filing season currently behind us, notices have started to appear in mailboxes. While the IRS letterhead strikes fear into the hearts of most Americans, a vast majority of those notices are nothing to fear, since most of them are computer-generated and referring to outstanding tax bills you haven’t paid yet or errors on your tax return that can be easily addressed. Simply getting an IRS notice is…

  • 26 Jul, 2018
  • Jacqueline Cran
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Taxpayers Find Gift Tax Reporting Confusing

gift tax



Article Highlights:

  • Gift Tax Return Filing Requirements
  • Lifetime Estate Exclusion
  • Annual Gift Exclusion
  • Tuition and Medical Exclusions

Gift taxes were created to prevent wealthy taxpayers from transferring their estates to their beneficiaries via gifts and thus avoid estate taxes when they pass away. But that does not mean only wealthy taxpayers need to be concerned with the gift tax provisions as, under many circumstances, even lower-income taxpayers may find they are liable for filing…

  • 23 Jul, 2018
  • Jacqueline Cran
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Moving Deductions are Over




Article Highlights:

  • Prior Law Deduction
  • Deduction Repealed
  • Military Exception
  • Employer Reimbursement
  • Reimbursement Gross Up

Prior to the passage of tax reform, individuals who moved as the result of a job change or job relocation could deduct their unreimbursed moving expenses if the driving distance from their home to the new job location was at least 50 miles more than the driving distance from home to the old job location. There was also a requirement that the…

  • 19 Jul, 2018
  • Jacqueline Cran
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A Mid-Year Tax Checkup May Be Appropriate

tax checkup

Article Highlights:


  • Concerns About Proper Withholding
  • Late IRS W-4 and Withholding Tables
  • New W-4 Complications
  • Self-employed Estimated Payments
  • Events That Can Impact Taxes

Taxes are similar to vehicles, in that they sometimes need a check-up to make sure they are performing as expected. That is especially true for 2018, with all of the changes brought about by tax reform.

One area of major concern is the amount of taxes individuals are withholding from their wages. Tax…

  • 16 Jul, 2018
  • Jacqueline Cran
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Is an Inheritance Taxable?



Article Highlights:


  • Estate Tax
  • Estate Tax Exemption
  • Fair Market Value at Date of Death
  • Step-up in Basis
  • Community Property
  • Deferred Untaxed Income

A frequent question is whether inheritances are taxable. This is a frequently misunderstood question related to taxation and can be complicated. When someone passes away, all of their assets will be subject to inheritance taxation, and whatever is left over after paying the inheritance tax passes to the decedent’s beneficiaries.

Sound bleak? Don’t worry, very few…

  • 5 Jul, 2018
  • Jacqueline Cran
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Got a Letter from the IRS?


IRS Notice


Article Highlights:

  • Confirm the Letter Was Not Sent in Error
  • Examine the Contents
  • Avoid Procrastination, Which Leads to Bigger Problems
  • Send Any Payments
  • Consider Change-of-Address Complications
  • Be Aware of ID Theft

If you have received an IRS envelope from the Internal Revenue Service (IRS) in your mailbox that does not contain a refund check, it will probably cause your heart rate to increase. Remain calm. Most of the issues in these letters can be dealt with…

  • 25 Jun, 2018
  • Jacqueline Cran
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Good and Bad News about the Home Office Tax Deduction


home office


Article Highlights:

  • Home Office
  • Qualifications
  • Actual-Expense Method
  • Simplified Method
  • Income Limitation
  • Employee Deduction

“Home office” is a type of tax deduction that applies to the business use of a home; the space itself may not actually be an office. This category also includes using part of a home for storing inventory (e.g., for a wholesale or retail business for which the home is the only fixed location); as a day care center; as a physical meeting…

  • 11 Jun, 2018
  • Jacqueline Cran
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Big Changes to the Kiddie Tax




Article Highlight:

  • Prior Law
  • New Law
  • Earned Income
  • Unearned Income
  • Fiduciary Rates
  • Strategies

Years ago, to prevent parents from transferring their investment accounts into their children’s name to avoid taxes, Congress created what is referred to as the kiddie tax. This counteracted the strategy of taking income from the parents’ higher tax bracket and shifting it to their children’s lower tax bracket.

The kiddie tax plugged that tax loophole by taxing the child’s unearned income (income not from working)…

  • 7 Jun, 2018
  • Jacqueline Cran
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Summer Employment for Your Child


Summer employment

Article Highlights

  • Higher Standard Deduction
  • IRA Options
  • Self-Employed Parent
  • Employing Your Child
  • Tax Benefits

Summer break is here, and your children may be looking for summer employment. With the passage of the most recent tax reform, the standard deduction for single individuals jumped from $6,350 in 2017 to $12,000 in 2018, meaning your child can now make up to $12,000 from working without paying any income tax on their earnings.

In addition, they can contribute the lesser…

  • 4 Jun, 2018
  • Jacqueline Cran
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