HOLDING PROPERTY IN A CORPORATION POTENTIAL ISSUES Holding property in an entity provides asset protection from creditors, but the type of entity holding the property will have a big tax impact; for example, partnerships have an edge over C or S corporations when it comes to getting the property back out of the entity. Weighing the pros and cons of different entities, whether real estate will be held in the … Read more
The Tax Cuts and Jobs Act (TCJA) loosened the restrictions on the eligibility rules for using the cash method of accounting. This made this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either … Read more
Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to tax breaks for individuals, reducing or eliminating some while expanding others. The total impact of all of these changes is what will ultimately determine whether you see reduced taxes. One interrelated … Read more
The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file your 2017 tax return. Pre-TCJA bonus depreciation Under pre-TCJA law, for qualified new assets that your … Read more
On December 20, Congress completed passage of the largest federal tax reform law in more than 30 years. Commonly called the “Tax Cuts and Jobs Act” (TCJA), the new law means substantial changes for individual taxpayers. The following is a brief overview of some of the most significant provisions. Except where noted, these changes are effective for tax years beginning after December 31, 2017, and before January 1, 2026. Be … Read more
This tax reform information will help you prepare for the year ahead, which will likely include squeezing in last-minute tax planning moves in 2017 to take advantage of provisions still on the books that won’t be available next year. For example, a taxpayer who will itemize in 2017 but will likely be taking the larger standard deduction next year may benefit from making charitable contributions this year instead of next and from … Read more
Congress is enacting the biggest tax reform law in thirty years. One that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill. Also the amount of federal tax you will pay. Since most of the changes will go into effect next year, there’s still a narrow window of time before year-end to soften or avoid the impact of crackdowns. Also to best … Read more
On November 28, the Senate Budget Committee voted 12 to 11. This advanced the Senate Republicans’ version of the “Tax Cuts and Jobs Act” setting the scene for a floor vote. The vote to take up the Senate tax reform bill could occur as early as tomorrow. This would start 20 hours of debate and the amendment process. Final vote on passage could occur as soon as Thursday evening or … Read more
2017 TAX REFORM | PROPOSED BUSINESS TAX CHANGES Recently, an updated tax reform proposal was released by the House Ways and Means that would make major changes to the taxation of corporations and other businesses, foreign income taxpayers, and exempt organizations. The below provisions are proposed (but not finalized). If you have any questions or concerns about how this might affect your tax planning, please contact us to set up a consultation. Changes to … Read more
