Law Office of Douglas P. Humes

07/10/2025

The recent "One Big Beautiful Bill" that was signed into law last week was essentially a tax bill, dealing with what income will be taxed, and what deductions and credits will be available.

There is nothing of particular benefit for 47% of the households in America with the lowest income. Why is that? Is it because it is a bill for "Rich People"? It is always characterized like that. 47% of the households in America is a lot of people. So why does nothing in this bill directly benefit them?

47% of the households in America don't pay any federal income tax.

You read that right. 47% of the households in America do not pay any federal income tax. Yes, some of them pay into Social Security and for Medicare - but subtracting out those people, that still leaves 28% of the households who pay no federal taxes.

So who are these people who don't pay taxes? Essentially there are three major groups: low income families with income below the minimum threshold, retirees, and families with children who receive certain credits that reduce their income below the minimum taxable amount.

So a federal tax bill of any kind generally does not benefit the households who don't pay federal taxes anyway.

So what is in this bill for the taxpaying public? Here is a summary from The Tax Foundation, the world's leading non-partisan non-profit group that focuses tax policy:

The One Big Beautiful Bill Becomes Law

On July 4th, President Trump signed the One Big Beautiful Bill Act into law, capping off the final step of the 2025 budget reconciliation process. Here are some of the major tax changes:

Extension of current individual income tax rates (permanent)

Increased standard deduction and child tax credit (permanent)

100 percent bonus depreciation and R&D expensing (permanent)

Section 199A pass-through deduction (permanent)

Above-the-line deduction for charitable contributions (permanent)

IRA green energy tax credit changes (permanent)

College and university endowment tax (permanent)

International tax changes to GILTI, FDII, and BEAT (permanent)

100 percent expensing of qualifying structures (temporary)

Expanded SALT deduction cap (temporary)

Additional senior deduction (temporary)

“No tax on tips” deduction (temporary)

"No tax on overtime” deduction (temporary)

Auto loan interest deduction (temporary)

Our experts say that while the new tax law is expected to grow the economy by making pro-growth policies like 100 percent bonus depreciation and R&D expensing permanent, it misses an opportunity to address the deficit while focusing too heavily on political carveouts like the “no tax on” exemptions that further complicate the tax code.

We estimate the tax law will increase long-run GDP by 1.2 percent and increase the deficit by $3 trillion over the next decade when factoring in spending cuts and economic growth.

Join us next Tuesday at 3 p.m. EST on YouTube for a discussion with our experts, who will break down what the major tax provisions in the new law mean for the US economy, deficits, and taxpayers like you. Subscribe to our YouTube channel to get notified. https://www.youtube.com/

07/09/2025

The Big Beautiful Bill that was signed into law last week gives tax relief to Seniors up to a certain income threshold, and then phases out at certain income levels. So that part of the bill is geared towards the Middle Class seniors.

It does not directly make Social Security benefits non-taxable, but does so indirectly by creating a new $6000 deduction for qualifying seniors. Are you one of those qualifying seniors? Check out the linked AARP article that reviews those parts of the new law geared towards Seniors.

Who qualifies? How much is it? We answer key questions.

06/04/2025

I saw this headline this morning and thought "Don't we already have that law?" I had remembered some kind of ban on distracted driving going into effect years ago. And I was right ... by half. A ban on texting while driving was adopted back in 2011. This latest law is a full ban on holding any handheld device while driving.

Why the ban? "PennDOT reported 9,950 crashes caused by distracted driving last year, which resulted in more than 6,000 injuries and 49 deaths." I am a biker, but I rarely ride on the roads any more for that reason. It's too easy for someone chatting on their phone to run you off the road or kill you through inattention.

I wrote a thoughtful piece about that topic back in 2010, before the first law went into effect: https://doug-humes.blogspot.com/2010/07/for-whom-bell-tolls.html

Here are more details on what will get you fined:

"For the first year, police will only issue warnings to drivers caught violating the law. Starting in June 2026, violators will be hit with a $50 fine. Motorists will still be permitted to contact emergency services while driving and continue to use hands-free technology to make calls and send texts."

It's still simply a slap on the wrist. $50. Even a teenager working fast food could pay that with a few hours of work. Will it work?

"In states that have passed similar bans, the number of distracted driving crashes has declined significantly, Shapiro said."

We'll see. https://www.phillyvoice.com/pennsylvania-handheld-device-driving-ban-paul-millers-law/

Paul Miller's Law prohibits using cell phones and electronic devices while driving, with warnings issued in the first year before $50 fines begin in 2026.

01/15/2025

SCAM ALERT:

Phishing is a play on "fishing" - where you put a hook in the water and hope you catch a big fish. The email Phishers do the same thing - put out a hook and hope to land a Phish that they can con and steal from. If you know about the different ways they do so, then you can protect yourself. Here was a new one for me:

I use a service called DocuSign, that allows you to sign legal documents electronically through their secure service. Today I received a seemingly legitimate notice from what appeared to be DocuSign letting me know that the City of Philadelphia Procurement Office had a document for me to sign.

I do little business in Philadelphia, and so was was suspicious. Logged in to DocuSign - and there was the evidence of that same item waiting to be signed. Sniffing around it and saw a whole list of contractors which appeared to be on the same message.

Usually a phishing scam asks you to click on a link, which then takes you to the Bad Guys, pretending to be legitimate, and ask for your information and use it to steal your money. That's why you should not click on a link in a suspicious email, but instead login to your account with whatever the source is - your bank, or credit card company or whoever is named in the email.

I did not click on the link but instead logged in to my DocuSign account, and saw the communication in the secure DocuSign site - but still was not comfortable with it. So I found the City of Philadelphia Procurement Dept, and forwarded them the email I received, and asked them whether it was legitimate or phishing. They responded within 20 minutes and let me know it was a phishing scheme.

I have been internetting for 30 years, and so have seen it all. Have seen the good that can be done, and then see the bad that can be done to take advantage of those who are unaware of schemes like this. They prey on the elderly, the uninformed, the trusting. I've had clients who have become the innocent victims of these scams.

What to do? Be suspicious of any email asking you to click on a link to go to an internet site. Be suspicious of any phone numbers or emails listed in the email. When in doubt, throw it out.

As we heard at the end of roll call in Hill Street Blues (remember that series?): "Let's be careful out there!"

01/02/2025

Attention anyone who is the owner/manager of a business corporation/LLC/limited partnership:

The Corporate Transparency Act (CTA) was enacted as part of the Anti-Money Laundering Act of 2020 and took effect on January 1, 2024. It requires virtually all business corporations and limited liability companies to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). The deadline for compliance was January 1, 2025. However, recent legal developments have led to the suspension of the filing requirements until the court case makes its way to a conclusion..

The act requires" reporting companies" to report their beneficial owners to prevent money laundering and other illegal activities. Reporting Companies include:

Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.

Beneficial owners are individuals who exercise substantial control over a corporation or limited liability company, own 25% or more of the interest in such entities, or receive substantial economic benefits from them.

Beneficial Ownership Information Reporting: Under the CTA, businesses must file beneficial ownership information with FinCEN. This information includes the legal name, address, date of birth, and a valid ID number of each beneficial owner.

Suspension of Filing Requirements: On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated a nationwide preliminary injunction that suspends enforcement of the CTA and its implementing regulations. This means businesses are currently not required to file beneficial ownership information reports.
Legal Challenges: The CTA has faced several legal challenges, leading to a series of rulings that have alternately reinstated and suspended the act’s requirements. The Fifth Circuit Court of Appeals has set March 25, 2025, as the date for hearing oral arguments on the merits of the case.

Penalties for Non-Compliance: If the CTA is ultimately deemed enforceable, businesses that fail to report their beneficial ownership information could face fines of up to $10,000 and/or imprisonment for up to two years.

Future Uncertainty: The future of the CTA remains uncertain, as the new Congress could potentially extend compliance deadlines, repeal the requirements, or take other actions. Businesses should monitor the situation closely and seek legal counsel regarding compliance with the CTA.

If you are curious and want to explore what all is entailed here, you can start at the FinCen home page here: https://www.fincen.gov/boi

If you have follow up questions, feel free to consult with your favorite attorney!

11/18/2024

I've seen an uptick in text messages to my cell phone from unknown numbers that simply say "Hi". I ignore them - but just now received on and took the next step of trying to understand what these are about. The explanation from the FTC is:

"Scammers are using this tactic as a conversation starter, so don’t text back. If you do, here’s what happens next. The person (a scammer) on the other end of the text will probably apologize…and find a way to keep the conversation going to befriend you. Then, once they have your trust, they’ll try to offer you advice on investing in cryptocurrency or claim they can teach you the secrets to making big money in the crypto markets. For a fee, of course. But it’s all a scam and they’ll just steal your money. "

See link for further on that explanation, and instructions on what you may want to do as follow up.

A text message from an unknown number that simply says: hi, how are you? seems harmless. Your first instinct might be to respond to see if it’s someone you know. Or maybe tell them they made a mistake. But it’s best to ignore these type of text messages. Scammers are using this tactic as a conve...

09/09/2024

Driving to church in Newtown Square yesterday and the streets were blockaded, and a big fence was set up along the median strip, with lots of police cars out. It turns out that the viewing was being held for the two ice hockey playing brothers who were killed last week while riding their bikes in New Jersey. When I came home around five hours later, there still seemed to be activity. Must’ve been a massive outpouring of love and grief from the community. Though I don’t know what their connection was to Broomall.

14 years ago, I was still occasionally biking to my office. Another biker, commuting to his office nearby, was killed by an inattentive driver. I wrote an article about all the thoughts that brought up in my mind as I biked to work the next day. I don’t do that anymore. It’s too dangerous. People don’t see me. People are not paying attention. People don’t realize how fragile a biker in motion is compared to a car. The occasional times when I bike on the road I will do it on back roads early in the morning. Or not at all. And that’s a shame.

Here’s my article from 2010: https://doug-humes.blogspot.com/2010/07/for-whom-bell-tolls.html?m=1

07/02/2024

Pennsylvania, and probably all other states, have a "Slayer's Act" which says that if you kill someone (including if you are an accessory to the murder - one of the plotters), you cannot then profit from that death - either by inheriting from the estate, or profiting in some other way - like writing a book about it.

A few states have taken the lead in expanding that law so that it also includes elder abuse. Pennsylvania joined those states by enacting such a law yesterday. Now, the law applies to anyone convicted of specified elder abuse offenses as well. This means that if someone financially exploits or abuses an elder, they won't be able to inherit from the victim's estate or receive any other benefits as a result of the abuse. This new provision is intended to discourage abuse motivated by financial gain and helps ensure that abusers don't profit from their crimes.

What types of abuse are covered:

"An offense under 18 Pa.C.S. Chs. 27 (relating to assault), 31 (relating to sexual offenses), 39 (relating to theft and related offenses) and 41 (relating to forgery and fraudulent practices) and criminal attempt, criminal solicitation and criminal conspiracy to commit the offense under 18 Pa.C.S. Ch. 9 (relating to inchoate crimes), when the offense is committed against a person 60 years of age or older."

The act is aimed at the adult child or family member who cashes the elderly parents social security checks and takes the money, or uses a power of attorney to change title to property or use the elder's assets to pay for their own debts. Or worse - physically threatens dad or grandpa to "voluntarily" give them the money or property. If convicted, they will not inherit from Dad's estate - even if named in the will.

It's a good law and while it may not deter the person with the mindset who thinks that behavior is acceptable, it does take the profit motive out of it - if the abuser knows that there is a law that will stop them from benefitting from their parents estate.

06/06/2024

Today is the 80th anniversary of D Day. Lest we forget.

In 2023, local residents Sue and Bob Catlett reached out to me because they knew I write local history articles. They were planning a trip to the Normandy beaches and wanted to know if there were any local boys at the cemetery there that they should visit. I consulted my notes, and found one, Clifford Douglas Murray, Jr. I really had only his name and that he was killed in the war. The Catletts visited the US cemetery at Normandy, found the grave for Clifford, and came back and sent me photos of what they saw. We both remarked on how 2024 would be the 80th anniversary of D Day, and more or less said “We should do something for that occasion.” I proposed the topic to my publisher, and he was okay with exploring the idea for either my usual short history article, or perhaps a longer feature.

I began by exploring who Clifford Murray was. He lived with his family on Media Line Road, near where the local high school now stands. When the war started, he was working with his father, who managed the affairs of the Stull farm – now the campus of Delaware County Community College. He enlisted in the Army in February of 1942, 2 months after Pearl Harbor. Arrived in England in July, and was in combat by November in North Africa, and then Sicily, and then on June 6th, 1944 his unit was the tip of the spear that landed first at Omaha Beach that morning. He survived that day, but was killed in the hedgerows of Normandy 9 days later. Age 24. He was buried near where he fell, and was re-interred after the war at the beautiful US military cemetery overlooking Omaha Beach. Row upon row of headstones at Normandy remind us that all gave some, some gave all.

His life and his sacrifice are worth remembering. Clifford Murray is on the cover of this month’s issue of three local magazines, as the Friend and Neighbor of the Year. His story is the feature story of the magazines. See link for the Edgmont version.

Did he have relatives in the area? Yes. I found them and visited them, and they opened up a box with his photos, his Purple Heart, letters, and the flag that draped his casket when he was reburied in Normandy.

This Sunday, June 9th, at 5:00 pm, the local veterans’ organization is hosting a ceremony for him. The flag that draped his casket in Normandy will be raised at the Delaware County Veterans Memorial at 4599 West Chester Pike, Newtown Square, PA 19073. His family will be represented and will speak. And we will honor his memory, and the memory of all of those who boarded those landing craft and crossed over the Channel to Normandy that morning.

You are all cordially invited!

https://issuu.com/bestversionmedia9/docs/nef_n_2024-06_5442_newtown_edgmont_friends_neigh

05/08/2024

Do you hate seeing people swerving on the road, and when you pull up, you find they are holding their phone in one hand, and the steering wheel with the other? Most of us do. And now the Pennsylvania legislature has done something about it.

A bill that is expected to be signed into law by the Governor will make holding a cell phone while driving a punishable offense. With a handful of common sense exceptions. You can use your phone for GPS purposes. If you are hands-free and do not enter more than one digit to make a call, or do it by voice command; if you are using the phone in an emergency; a number of other situations. Distracted driver education will be added to the driver’s exam for new drivers.

There will be a $50 fine for violations. If you kill someone while using the cell phone, then an additional 5 years can be added to your jail time.

Simple rule of thumb – don’t touch your phone when you are the driver.

If you want to explore all of the side issues relating to the proposed law, here is a link to the bill: https://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2023&sessInd=0&billBody=S&billTyp=B&billNbr=0037&pn=1588

05/08/2024

I attended a program on what is new in Social Security. The Agency rep passed along handouts - see link below - and stressed that each of us would benefit by creating a My Social Security account. What can yo do there? See handouts here: https://acrobat.adobe.com/id/urn:aaid:sc:US:6c6548cf-a87b-4722-8b9b-2f914d5d1671

05/03/2024

In Pennsylvania, non-profit organizations can qualify for an exemption from the state's 6% sales tax on purchases made for their charitable purposes. This applies to institutions like charities, religious organizations, and educational groups that meet the state's definition of "institutions of purely public charity". They need to apply for a separate exemption from the state even if they have federal 501(c)(3) status.

To apply for the exemption, you'll need to file form REV-1310, "Sales and Use Tax Exemption Certificate," with the Pennsylvania Department of Revenue.

But ... there's now a convenient online application option available through myPATH. That path starts here:

​Harrisburg, PA — There is a new online filing option available for non-profits, such as charitable and volunteer organizations, to apply for and renew a Pennsylvania sales tax exemption. The Department of Revenue recently launched this online application on myPATH to deliver a new, streamli...