Top Ways Tax Reform Affects Individuals, Estates and Trusts
Individual taxpayers (defined as U.S. citizens and legal residents) at every income level will feel the impact of the Tax Cuts and Jobs Act (“TCJA”) – some more than others. However, high-net-worth individuals may have the most to gain and the most to plan for, thanks in no small part to the top tax rate being reduced and the estate and gift tax exclusion nearly doubling under this new legislation. Whatever your own tax situation may be, knowing the top ways tax reform affects individuals, estates and trusts can help you to make the most of new tax savings and. Read More.
2018 Tax Reform Highlights for Technology, Health and Life Sciences, Manufacturing and Distribution
What provisions of the Tax Cuts and Jobs Act (“TCJA”) will have the biggest impact on businesses in the technology, health and life sciences, and manufacturing and distribution sectors – what we like to call “THInc” (technology, health sciences, industrial) businesses? The answer is: Potentially dozens. There are a lot of big changes and important items to highlight. So, use this list as a quick reference guide to find the topics that will be the most likely to affect you and your organization. Large-Scale Corporate Tax Changes Some of the biggest changes to corporate tax law enacted by the TCJA. Read More.
Real Estate, Construction, and the New Tax Law
The business community is beginning to digest the broad reach of the Tax Cuts and Jobs Act (“TCJA”). For our clients in the real estate and construction industries, we see new opportunities for tax savings, new complexities, and new reasons to engage in conversation and consultation. New Opportunities Simplification Provisions Businesses with less than $25 million in annual revenue may benefit the most under the TCJA. The simplification provisions that apply to these taxpayers permit use of the cash method of accounting, simplified inventory accounting methods, and the completed contract accounting method for long-term contracts. These accounting methods can create. Read More.
Impact of Tax Reform on Current Year Financial Statements
Most of the provisions in the newly passed Tax Cuts and Jobs Act (“Act”) are effective for years beginning after December 31, 2017. However, Accounting Standards Codification (“ASC”) 740 (Accounting for Income Taxes) takes a balance sheet approach, requiring tax-related assets or liabilities existing as of the date of enactment to be revalued at the future reversal tax rate. Revaluing Deferred Tax Assets and Liabilities Beginning January 1, 2018, the federal corporate tax rate moves from being a progressive rate (with most companies previously subject to a 34 percent or 35 percent rate) to a flat 21 percent rate. According. Read More.
Top Tax Changes for Nonprofits and Education in the New Tax Bill
Sweeping tax reform has been enacted with most provisions being effective for years beginning after December 31, 2017. This means calendar year taxpayers have mere days to take action, where possible, to mitigate the effects the new law may have on them in 2018. Several provisions affect exempt organizations directly, while other provisions will be felt through the impacts the new tax law has on donors and employees. The legislation is complex and will likely need interpretation, since we aren’t sure how long we’ll have to go without official guidance from the IRS. For a quick rundown of what did and. Read More.
Look out for ACA Penalty Letters from IRS
The Internal Revenue Service (“IRS”) is sending penalty letters to certain large employers as the first step in enforcing the employer shared responsibility provision in the Affordable Care Act (“ACA”). These Letters 226-J are for 2015, the first year for which the penalty will be assessed. The employer shared responsibility provision states that applicable large employers (“ALEs”) must choose one of two options: Offer affordable health coverage that provides minimum essential coverage to full-time employees and their dependents, or Make an employee shared responsibility payment (“ESRP”) to the IRS for any full-time employees who receive a premium tax credit for. Read More.
Top 5 Things You Need to Know about Changes to Partnership Audit Rules
On November 2, 2015, Congress passed the Bipartisan Budget Act (“BBA”). The BBA established a new partnership audit regime and entirely repealed the current partnership audit rules under the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the electing large partnership rules. Among other things, the new rules greatly enhance the ability of the Internal Revenue Service (“IRS”) to audit partnerships by allowing the IRS to make assessments against and collect taxes from the partnership itself. As a result, the new rules, which take effect for partnership taxable years beginning on or after January 1, 2018, will have significant implications. Read More.