After unifying the House and Senate tax reform provisions into one piece of legislation, the Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017. The bill represents the most significant revision of the US tax code in decades and will have many long-term effects.
Classic tax planning typically involves acceleration of tax deductions and deferral of income. However, tax planning will look different than before as there are many deductions that will be limited or even eliminated altogether. An overview of some of the significant provisions affecting business taxpayers and individuals are identified below.
This tax reform will mark a fundamental change in the way businesses will calculate taxable income, and subsequently affect the amount of federal tax you will pay. Here are a few changes effective in 2018 that will affect your business returns this year:
Beginning in 2018, the Tax Cuts and Jobs Act suspends or reduces many popular tax deductions in exchange for a larger standard deduction. Read more below.
Our goal is to provide you peace of mind as it relates to you and your businesses. Because everyone’s tax situation is unique, we encourage you to reach out so we can help you understand how this new tax legislation could potentially affect you. If you believe you will be affected by this tax law, please call us at 714-672-0022 and schedule an appointment today!