Levine, Jacobs & Company, LLC, Member Talks Taxes, Divorce And New Tax Laws

Top Quote Michael Karu, CPA/CFF, appears on television, radio and print, where he discusses taxes, divorce and the perils of do-it-yourself accounting. End Quote
  • Newark, NJ (1888PressRelease) March 06, 2019 - Michael H. Karu, CPA/CFF, Member, Levine, Jacobs & Company, LLC., a Livingston-based leading accounting firm, was published in the New Jersey Law Journal and appeared on radio and television, where he discussed in detail, taxes, divorce and the risks of DIY tax preparation.

    Appearing on CBS Television, Karu stated in 2019, there will no longer be a tax credit for the person paying alimony nor will the recipient be able to claim it as income. This provided a catalyst for many couples to finalize their divorce in 2918. Please visit https://cbsloc.al/2Sos9kv to watch the interview.

    The Tax Cut and Jobs Act (TCJA) impacts divorces occurring after Dec. 31, 2018, through the elimination of taxable/tax deductible alimony. The TCJA essentially nullifies the statutory factor of the consequences from the tax treatment of alimony, N.J.S.A. 2A:34-23, because all future alimony payments will be nontaxable. Karu co-authored an article, “Maintaining Tax Deductible Alimony Under Tax Cut and Jobs Act,” which appeared in the ‘Family Law Supplement’ of the New Jersey Law Journal, to address these concerns. Please visit https://bit.ly/2SLosV3 to view the article.

    Karu spoke with Host Bert Baron, WCTC-AM radio regarding three main ways to reduce taxes. Karu stated, “These suggestions would have to be completed by December 31 of the previous year. Try batching your medical expenses into one calendar year, both batching and making charitable donations by December 31st and, if you are going through a divorce where there have been dramatic changes, make sure you understand the ramifications of being the one to provide alimony and, on the flip side, the one receiving it. To hear the interview in its entirety please visit https://bit.ly/2EgtPIt .

    Additionally, Michael was interviewed by Neal Howard, TALKERS FM radio, on the role the IRS plays in determining taxes. Karu quickly explained it is Congress that makes the laws and the IRS who simply implements them. Former Supreme Court Justice, Learned Hand famously stated, “Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.” Or as Michael paraphrases, ‘Everyone is responsible to pay the least amount of taxes as possible, under the law.’ For the entire interview please visit https://bit.ly/2Uk1CFH.

    For all those who have handled their own tax preparation in the past, Karu spoke with NJBIZ where he cautions that the new tax laws, the most complex in our history, will make this difficult and potentially risky. Visit https://bit.ly/2Tg3JxU to view the article.

    Earlier this month, Karu was a featured speaker at the Livingston area Chamber of Commerce. He addressed new tax laws for 2019 and fielded questions from participants at this event. “When we were preparing the 2017 taxes for our clients, we would use the 2018 tax law to see what the implications would be,” Karu said. “Invariably, there was very little difference between 2017 and 2018. Taxpayers just need to be cautious and make sure that they take advantage of everything under the law."

    To speak with and/or set up an interview with Michael Karu, please contact Amy Delman, Amy Delman Public Relations, LLC, 201.563.4614 or amydelmanpr ( @ ) verizon dot net dot

    Michael H. Karu, CPA/CFF, is a member of Levine, Jacobs & Company, LLC, a Livingston-based accounting and consulting firm. He is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is a Certified Divorce Mediator and is Certified in Financial Forensics. Karu received his B.S. degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs.

    Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.

    Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where “every account receives the talent and expertise of the whole firm.”

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