Frequently Asked Questions

Craine, Thompson & Jones, P.C.

Where are you located?

Craine, Thompson & Jones is located in Downtown Morristown, Tennessee at 225 West First North Street, on the top floor of the Millennium Square Building, and in Sevierville at 248 Bruce Street, Sevierville, TN 37862.

What is your mailing address?

Our mailing address is:

P.O. Box 1779

Morristown, TN 37816-1779

What is the current mileage rate?

58 cents per mile for business miles driven in 2019

20 center per mile driven for medical or moving purposes in 2019

14 center per mile driven in service of charitable organizations in 2019

What is the annual gift limit?

$15,000 per individual in 2018 and 2019

Example: On December 31, 2018 you give $15,000 to your son and $15,000 to your son’s wife. On January 1, 2019 (the next day), you give another $15,000 to your son and another $15,000 to your son’s wife. If you made no other gifts to your son or his wife during these two years, all the gifts are covered by the annual exclusion.

What type of entity should I form?

Taxpayers have a variety of entity options to choose from when forming a new business. However, the type of entity that is needed depends heavily on the purpose of the business and the needs of the taxpayer. A for-profit business can choose to operate as one of the following:

Sole Proprietor
Limited Liability Company, including Single Member LLC
General Partnership
Limited Partnership
Subchapter S – Corporation
Corporation

Contact your tax advisor or attorney to discuss the benefits and limitations of each entity option

How quickly can I write off my equipment purchases?

Section 179 is available to taxpayers engaged in an active trade or business and allows for the immediate expensing of most new or used personal property in the year it is purchased. Vehicles are eligible for Section 179, however separate limitations are imposed.

The maximum deduction that can be claimed is $500,000 on the first $2,000,000 of asset additions in a tax year. After the $2,000,000 investment threshold has been reached the expense maximum is subject to a phase out.

Does Tennessee have an Income Tax?

Tennessee imposes an income tax on individuals and other entities receiving interest from bonds and notes and dividends from stock. Prior to 2016, the rate of tax was 6%. However the Tennessee General Assembly passed legislation that reduced the rate from 6% to 5% beginning January 1, 2016. The new law requires the full repeal of the Hall Income Tax for tax years beginning January 1, 2021. The following schedule outlines the yearly tax rates: