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Tax Reform Central

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In the rapidly changing tax landscape it’s nice to have a resource to help you figure it all out. Check here for the latest updates on tax reform.

Tax Cuts And Jobs Act Creates Employer Credit For Paid Family And Medical Leave

Mar 19, 2018

Certain employers that pay family and medical leave to their employees may be eligible to claim a Family and Medical Leave Credit equal to 12.5 percent (or more) of the amount of wages paid to those employees during any period in which such employees are on family and medical leave.

Qualified Opportunity Zones

Mar 15, 2018

New Tax Incentive For Investment In Low-Income Communities Background Investment in a Qualified Opportunity Zone is a new program intended to connect private investment capital to low-income communities nationwide. This concept was originally presented in a bipartisan bill, the “Investing in Opportunity Act” as an innovative approach to spur long-term private sector investments in low-income urban and rural communities. While the [...]

Tax Deduction For Moving Costs: 2017 Vs. 2018

Mar 06, 2018

If you moved in 2017, you might be able to deduct some of your moving expenses on your 2017 tax return. Unfortunately, if you move in 2018, it’s a different story.

Section 199A – Taxpayers Should Be Mindful Of Limitations To The Qualified Business Income Deduction

Mar 02, 2018

The Qualified Business Income Deduction under Code Section 199A has brought significant changes to the way that pass-through entities are taxed under the Tax Cuts and Jobs Act. Before considering any limitations, it is a deduction for 20% of qualified business income (QBI) of pass-through entities.

Entertainment Expenses Slashed Under Tax Reform

Feb 28, 2018

Prior to the Tax Cuts and Jobs Act (TCJA) passed in December, companies could deduct 50% of meals and entertainment (M&E) costs incurred, provided that they could establish that the item was directly related to the active conduct of the taxpayer’s trade or business. As a result, many companies combined these M&E expenses into one [...]

2017 Tax Reform: IRS Clarifies Deductibility of Interest on Home Equity Loans

Feb 27, 2018

In an Information Release (IR 2018-32) dated February 21, 2018, as response to many questions received from taxpayers and tax professionals, the IRS advised that in many cases, taxpayers can continue to deduct interest paid on home equity loans under the recently enacted Tax Cuts and Jobs Act (TCJA). As part of the same information [...]

Tax Cuts and Jobs Act Temporarily Lowers Medical Expense Deduction Threshold

Feb 21, 2018

The new tax law makes it easier to claim the medical expense deduction on your 2017 tax return. It provides planning opportunities for 2018, too.

Foreign Partner Sales Of Partnership Interest

Feb 21, 2018

Not only does the Tax Cuts and Jobs Act impact U.S. residents and citizens, but also affects foreign partners and companies doing business in the U.S. In particular, when foreign partners sell their interest in a U.S. partnership, there are now clear U.S. tax consequences to be settled.

New Unrelated Business Income Rules May Raise Costs For Nonprofits

Feb 21, 2018

The Tax Cuts and Jobs Act delivered significant changes to organizations nationwide, including nonprofits. Among those were changes to how unrelated business income is calculated and taxed. What is unrelated business income (UBI)?

Can You Deduct Home Office Expenses?

Feb 12, 2018

Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction.

Breaking Up Is Hard To Do And Tax Reform May Make It Harder

Feb 12, 2018

As I am sure everyone knows by now, new tax legislation was enacted on December 21, 2017. The new legislation will impact not only couples to be divorced in the future but it will also impact couples that are already divorced and still paying alimony.

Tax Reform: Has The Value Of My Business Changed?

Feb 06, 2018

There are several valuation methodologies that utilize a company’s cash flows in the determination of value: the discounted/capitalized cash flow methods, the guideline public company method and the guideline transaction method. Each of these methodologies presents unique elements that should be considered by the valuator in their analysis when evaluating the impact of the Act [...]

The New International Alternative Minimum Tax

Jan 31, 2018

The Tax Cuts and Jobs Act (TCJA) brought with it many changes, including a major one to international tax law. The Base Erosion and Anti-Abuse Tax, commonly referred to as “BEAT”, is a new alternative minimum tax that applies specifically to US and non-US multi-national corporations who make large payments to foreign related parties after [...]

Qualified Business Income Deduction – which industries are in, and which are out?

Jan 26, 2018

The new Qualified Business Income Deduction under Code Section 199A is one of the most talked-about changes signed into law as part of the Tax Cuts and Jobs Act. This is a new provision of the Code that, on the surface, will allow owners of pass-through entities (partnerships, s-corporations, sole proprietorships, etc.) a 20% deduction [...]

Tax Cuts And Jobs Act Expands Appeal Of 529 Plans In Estate Planning

Jan 24, 2018

529 plans can now help grandparents achieve more estate planning goals than just funding their grandchildren’s college expenses.

Personal Exemptions And Standard Deductions And Tax Credits, Oh My!

Jan 24, 2018

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.

Tax Cuts and Jobs Act Increases Code Section 179 Expensing Limitations

Jan 18, 2018

A favorable provision in the Tax Cuts and Jobs Act (TCJA) is the increased expensing limits and phase-out threshold of Code Sec. 179. The new expensing limitations and phase-out threshold will go into effect for property placed in service after December 31, 2017 and will be indexed for inflation for tax years thereafter.  

Tax Reform Brings Changes to How the “Kiddie Tax” is Calculated

Jan 18, 2018

The tax on unearned revenue by a minor commonly known as the “Kiddie Tax” underwent a major overhaul with the Tax Reform.

It’s Time To Review Your Estate Plan!

Jan 16, 2018

Here are the facts. The Tax Cuts and Jobs Act increased the lifetime exemption amount for estates to $11.2M from $5.6M for individuals (i.e. married couples now have a combined $22.4M lifetime exemption available). The annual gift exclusion was increased for inflation from $14,000 to $15,000.

The TCJA Temporarily Expands Bonus Depreciation

Jan 11, 2018

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.

Limited Interest Expense Deductions For Real Estate Companies… Or, Maybe Not

Jan 11, 2018

After depreciation, one of the biggest deductions for real estate companies is typically interest expense. As such, it’s come as no surprise to see there has been a lot of discussion around a provision in the Tax Cuts and Jobs Act whereby the deduction for net business interest is limited to 30% of adjusted taxable [...]

Tax Reform And Manufacturing

Jan 09, 2018

The Tax Cuts and Jobs Act signed into law by President Trump on December 22, 2017 brought extensive tax reform for all taxpayers including manufacturing companies.

How will Tax Reform impact your itemized deductions?

Jan 09, 2018

A few weeks ago Congress passed, and President Trump signed into law, HR-1, more commonly referred to as the Tax Cuts and Jobs Act (“The Act”). The new tax law will have an immediate impact beginning with the 2018 tax year and will have an effect on every business and individual no matter how large [...]

Tax Reform Update

Dec 20, 2017

The Tax Cuts and Jobs Act, H.R. 1, is the biggest overhaul of the tax code since 1986 and affects all taxpayers including individuals, trusts, S corporations, partnerships and C corporations. Click for an overview of how H.R. 1 compares to current law.

Federal Income Tax Reform and Immediate Impact on GAAP Financial Statements

Dec 20, 2017

On December 20th, 2017, Congress is expected to finalize the bill proposal through conference committee for tax reform.  Generally, corporations will see a decrease in income tax expense; however, the impact to financial statement reporting should not be ignored.

Contact
  • Rich Lundy
  • Director, Tax & Business Advisory Services
  • (614) 947-5264
  • rlundy@gbq.com