The most significant change to the U.S. tax code in 30 years was approved by Congress and signed by the President just in time for Christmas 2017. Many of the provisions became effective January 1, 2018, only a few days after being enacted.
SO, WHAT DOES IT CHANGE?
Corporate and Pass Through Entity Income Tax: Permanent
Corporate Tax Rates are reduced from 35% to 21%.
Business Income from Pass Through Entities: provides for a 20% deduction for individuals and trust and estates on domestic qualified business income from pass-through entities.
Effectively reduces the top tax rate for those eligible to 29.6% (from 37%)
Wages paid to owners and certain income from specified services business (i.e. attorney and accounting firms) are excluded from the deduction.
With sexual harassment so prevalent in the news lately, employers are rightly asking…what is sexual harassment and what do I need to do about it? If you’re an employer, let’s walk through your obligations to protect your employees from harassment and address how you should respond should it arise in your workplace.
First, an employer must exercise reasonable care to prevent and promptly correct any harassing behavior. The way to do this is to have an effective anti-harassment policy, disseminate it to all employees, and swiftly conduct investigations into complaints of harassment when they arise. Be clear that immediate and appropriate corrective action, including necessary discipline, will be taken whenever harassment has occurred in violation of the company’s anti-harassment policy. Continue reading →
On October 16, 2017, the Supreme Judicial Court of Massachusetts ruled favorably on a Personal Representative’s access to a deceased user’s online accounts and digital property (Ajeman v. Yahoo). This is the first reported case with respect to access to digital assets by a fiduciary.
The conundrum: Email are part of a deceased user’s estate. But a personal representative (aka executor) can’t read them without violating Federal privacy or anti-hacking law. The Ajeman case is the first to permit access and will empower fiduciaries throughout the U.S.
Summer break has come to an end, and children have started school again. In South Florida this means that “season” is right around the corner. Season is the time of year when many snowbirds come down to avoid the cold winter, as well as many international folks who are involved in the equestrian community. It is the perfect time when investors, and others who vacate their homes for a few months, provide housing for those coming down for season as they can usually obtain a good rental premium.
While seasonal renting can be lucrative for landlords, it is important that they are protected while doing so. A well-written lease agreement that protects a landlord is a must. A useful tip for landlords with seasonal rentals, as well as yearly rentals, is to try to obtain the entire rental amount up front or as much as possible. Besides the obvious benefit of collecting the money at the beginning and not wondering if the tenant will make the next payment or not, there is another benefit as well. Should the lease need to be terminated, say because the tenants throw an unruly party, if the lease is properly terminated by the landlord, the landlord could be entitled to keep the remaining amount of money that was paid for advanced rent. Continue reading →
Hurricanes are a fact of life in South Florida, and they don’t stop just because you are under contract to buy your home. As Hurricane Irma threatens all of Florida and the Caribbean, there are thousands of home buyers stuck waiting and wondering what is going to happen with their purchase.
I am often asked what people need to know and what they need to do if they are under contract to buy a home, condo, or townhouse. Here’s the general items to be aware of.
1. Your contract allows for this.
First and foremost, don’t panic – your contract to purchase allows and even makes accommodations for this very scenario (so long as you used the standard contracts). You should have a closing delay clause in your contract that allows you to close on the transaction up to a “reasonable” amount of time after a hurricane has dissipated – “reasonable” is generally considered to be about seven days.
If you’re unsure what your delay clause allows for, ask your Realtor or attorney to review your contract and walk you through it. Continue reading →