Congress has approved H.R. 1 the Tax Cuts and Jobs Act, significantly altering the U.S. tax code. Join us to learn more about what the new legislation means for individuals and businesses, including corporations and pass through entities.
This WEBINAR is an overview about how the Tax Cuts and Jobs Act alters the U.S. tax code for individuals and businesses.
For more in-depth information and personal engagement with our team, we welcome you to join us on Tuesday, January 30th from 9-11am at our Rockville Location, 1445 Research Boulevard, Ground Level Conference Room, Rockville, MD 20850.
2020 Year-End Tax Planning for Law Firms and AttorneysWithum
Tax planning can be a difficult strategic process; this tax planning season is further complicated by the COVID-19 pandemic as well as the uncertainties surrounding the Presidential Election. This session will shed light on a number of significant considerations regarding NJ BAIT, nexus issues related to remote working, and PPP loan forgiveness as it relates to general high net worth planning.
2020 Year-End Tax Planning for Law Firms and AttorneysWithum
Tax planning can be a difficult strategic process; this tax planning season is further complicated by the COVID-19 pandemic as well as the uncertainties surrounding the Presidential Election. This session will shed light on a number of significant considerations regarding NJ BAIT, nexus issues related to remote working, and PPP loan forgiveness as it relates to general high net worth planning.
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The outcome of the November 2020 election will likely prompt wealthy individuals and families to identify, assess and mitigate potential legal and tax risks when it comes to their personal tax and estate planning. This webinar will assist wealthy clients and their advisors in assessing potential tax law changes and discuss mitigation strategies, including the possibility of retroactive tax legislation to January 1, 2021. Presented by Melinda Merk, JD, LLM, CFP®, AEP® of McCandlish Lillard, PC and Marnette Myers, CPA, JD of Prager Metis CPAs.
PPP Loan Forgiveness and Tax Considerations For the Construction IndustryWithum
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After a year of uncertainty and economic disruption, the restaurant industry has won federal relief. On March 11 President Biden signed the American Rescue Plan into law which includes a $28.6 billion Restaurant Revitalization Fund (RRF) to assist struggling restaurants during the pandemic. The RRF impacts restaurant owners with 20 or fewer locations and will be administered by the Small Business Administration.
Topics for discussion:
- Who is eligible for RRF?
- How can the fund be used?
- Next steps and important considerations for restaurant owners
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The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
2021 Year End Tax Planning for Law Firms and AttorneysWithum
2021 has ushered in a return to what we can consider our new normal for the foreseeable future. The impact of COVID-19 on law firms persists in the form of hybrid work environments as managing partners are tasked with creating return-to-work policies with flexible remote work options.
With remote work comes complicated nexus implications that law firms must navigate. Meanwhile, federal and state tax laws, particularly Pass-Through Entity Taxes (PTET), continue to impact law firms in a unique way.
High Net Worth Webinar Series: SALT Thoughts - Pass-Through Entity Taxes & Re...Citrin Cooperman
During this webinar, we discussed how to potentially mitigate the impact of the state and local tax (SALT) cap at the federal level. New York State has joined the list of states that have enacted an elective pass-through entity tax in an effort to do just that. We also dove into the possibility of changing residency to a low-tax or no-tax state. With state tax rates on the rise in some places and the realization that remote work is doable, many individuals are contemplating making a move. To succeed in making a change like this, one must be aware of the technical rules and be willing to significantly adjust one’s life. We talked through all these considerations.
PPP Loan Forgiveness and Re-opening Guidance for the Restaurant IndustryWithum
In the midst of COVID-19, restaurants have been forced to change their business model quickly. Withum is partnering with New Jersey Restaurant and Hospitality Association to provide insight on PPP Loan forgiveness and how to prepare for re–opening your restaurant.
Tax Cuts and Jobs Act: Individual Tax Planning InsightRea & Associates
The new Tax Cuts and Jobs Act managed to pack in a lot of changes for individual filers, many of which have left more than a few of us scratching our heads. This webinar will dive into the provisions that will have the most impact on individual tax strategy, including changes associates with trusts and estates. Cindy Kula, CPA, PFS, CFP, and Inez Bowie, CPA, CSEP, have already spent countless hours combing through the legislation and additional guidance so you don’t have to. Join us for this session to find out what they found.
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
Post-Election Estate Planning and Tax Mitigation StrategiesMelinda Merk
The outcome of the November 2020 election will likely prompt wealthy individuals and families to identify, assess and mitigate potential legal and tax risks when it comes to their personal tax and estate planning. This webinar will assist wealthy clients and their advisors in assessing potential tax law changes and discuss mitigation strategies, including the possibility of retroactive tax legislation to January 1, 2021. Presented by Melinda Merk, JD, LLM, CFP®, AEP® of McCandlish Lillard, PC and Marnette Myers, CPA, JD of Prager Metis CPAs.
PPP Loan Forgiveness and Tax Considerations For the Construction IndustryWithum
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After a year of uncertainty and economic disruption, the restaurant industry has won federal relief. On March 11 President Biden signed the American Rescue Plan into law which includes a $28.6 billion Restaurant Revitalization Fund (RRF) to assist struggling restaurants during the pandemic. The RRF impacts restaurant owners with 20 or fewer locations and will be administered by the Small Business Administration.
Topics for discussion:
- Who is eligible for RRF?
- How can the fund be used?
- Next steps and important considerations for restaurant owners
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As 2020 nears completion, we discuss what automotive dealerships need to record and what files need to be kept in order to ensure that 2020 is closed properly and that the new year starts off right.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
2021 Year End Tax Planning for Law Firms and AttorneysWithum
2021 has ushered in a return to what we can consider our new normal for the foreseeable future. The impact of COVID-19 on law firms persists in the form of hybrid work environments as managing partners are tasked with creating return-to-work policies with flexible remote work options.
With remote work comes complicated nexus implications that law firms must navigate. Meanwhile, federal and state tax laws, particularly Pass-Through Entity Taxes (PTET), continue to impact law firms in a unique way.
High Net Worth Webinar Series: SALT Thoughts - Pass-Through Entity Taxes & Re...Citrin Cooperman
During this webinar, we discussed how to potentially mitigate the impact of the state and local tax (SALT) cap at the federal level. New York State has joined the list of states that have enacted an elective pass-through entity tax in an effort to do just that. We also dove into the possibility of changing residency to a low-tax or no-tax state. With state tax rates on the rise in some places and the realization that remote work is doable, many individuals are contemplating making a move. To succeed in making a change like this, one must be aware of the technical rules and be willing to significantly adjust one’s life. We talked through all these considerations.
PPP Loan Forgiveness and Re-opening Guidance for the Restaurant IndustryWithum
In the midst of COVID-19, restaurants have been forced to change their business model quickly. Withum is partnering with New Jersey Restaurant and Hospitality Association to provide insight on PPP Loan forgiveness and how to prepare for re–opening your restaurant.
Tax Cuts and Jobs Act: Individual Tax Planning InsightRea & Associates
The new Tax Cuts and Jobs Act managed to pack in a lot of changes for individual filers, many of which have left more than a few of us scratching our heads. This webinar will dive into the provisions that will have the most impact on individual tax strategy, including changes associates with trusts and estates. Cindy Kula, CPA, PFS, CFP, and Inez Bowie, CPA, CSEP, have already spent countless hours combing through the legislation and additional guidance so you don’t have to. Join us for this session to find out what they found.
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
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Pass-Through Business Income Deduction and Tax Planning for MLPs
New Treatment of Carried Interest
Rethinking Your Compensation and Benefits Plans
Tax Issues and Planning on New Tax Rates, NOLs and Deductions
Public Company Issues and Disclosures
Tax Reform and the Impact to your Franchise by Honkamp Krueger4 2018rhauber
The recent Tax Cuts and Jobs Act aka Tax Reform has made a significant impact on the tax situation of franchise business owners. Our slide deck provides the business tax and individual tax highlights of the Tax Cuts and Jobs Act for franchise organizations.
This presentation includes an overview of tax changes from 2012 and what's new in 2013.
For more information about our tax services, visit www.cbiz.com
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The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in NYC to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies.
The Tax Cuts and Jobs Act has now passed, which enacts the biggest tax reform law in thirty years. Citrin Cooperman's Federal Tax Policy Team recently hosted a webinar discussing what you need to know to begin planning and steps you can be taking to be prepared. The conversation focused on the following key areas:
Business
Corporate
Pass-Through Entities
International
Individuals
State and Local Implications
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2018-07 Systems Integration Best Practices for Integrating Your Business Appl...Raffa Learning Community
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In today’s accounting environment, there is mounting pressure to run leaner while becoming more effective than ever. Meeting deadlines, reviewing or preparing reconciliations and providing support requires new approaches to mitigating errors and compromising the integrity of your SOFP and SOA. It doesn’t have to be that way.
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Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
With the ever-increasing threat of viruses, security breaches, and cyber theft, it is important to understand the basics of network and internet security. In this session, you will learn how to pass the security portion of your audit and how to protect your hardware. We will also discuss security in the cloud and Privacy Laws.
This class is beneficial to IT, Operations, and Administrative professionals.
Adam Grant, in a recent Atlantic article, says it best: “People Don’t Actually Know Themselves Very Well.” Do you agree? He argues that your coworkers are much better at rating aspects of your personality than you are. Studying thousands of people at work show that coworkers are more than twice as accurate when asked to assess how stable, dependable, friendly, outgoing and curious you are. In this workshop, we will give you an opportunity to solicit feedback in advance of the workshop, reflect on feedback you’ve received, and provide a safe and confidential environment to explore your blind spots. Those blind spots may be related to the way you see yourself as a manager or leader or perhaps how you think about intergenerational differences. We’ll discuss the importance of self-awareness and provide some tools to help you integrate new knowledge about yourself in practical ways at work.
Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
Keeping reserves for a “rainy day” is a good practice for all nonprofit institutions, but how much should your organization set aside? A percentage of annual budget? Three-to-six months? Our answer is: it depends. Each nonprofit is unique and can experience distinct unexpected circumstances that may affect its long-term financial health.
This session, led by mark Murphy of Raffa Wealth Management, will focus on how to conduct a risk assessment that will assist your nonprofit in quantifying financial risks and opportunities. Once completed, this risk assessment aims to assist in finding the appropriate reserve level for your unique organization.
Whether you are in the initial phases of creating your nest egg or revaluating longstanding reserve levels, this session is for you.
Help your organization make better informed decisions. Join the Raffa Technology team and Prophix to discover how best in class organizations are using financial automation to drive improved budgeting, strategic financial analysis and better business decision making.
Learn how organizations are automating the financial budget process to deliver more accurate and timely information in the financial planning process.
Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
What is the point of small housing associations.pptxPaul Smith
Given the small scale of housing associations and their relative high cost per home what is the point of them and how do we justify their continued existance
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
This session provides a comprehensive overview of the latest updates to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly known as the Uniform Guidance) outlined in the 2 CFR 200.
With a focus on the 2024 revisions issued by the Office of Management and Budget (OMB), participants will gain insight into the key changes affecting federal grant recipients. The session will delve into critical regulatory updates, providing attendees with the knowledge and tools necessary to navigate and comply with the evolving landscape of federal grant management.
Learning Objectives:
- Understand the rationale behind the 2024 updates to the Uniform Guidance outlined in 2 CFR 200, and their implications for federal grant recipients.
- Identify the key changes and revisions introduced by the Office of Management and Budget (OMB) in the 2024 edition of 2 CFR 200.
- Gain proficiency in applying the updated regulations to ensure compliance with federal grant requirements and avoid potential audit findings.
- Develop strategies for effectively implementing the new guidelines within the grant management processes of their respective organizations, fostering efficiency and accountability in federal grant administration.
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
4. PROGRAM CONTENT
Major Tax Law Changes Under Tax Cuts And
Jobs Relief Act As It Pertains To:
– Individuals
– Corporations
– Pass-Through Entities
– Estates and Trusts
TCJA-Highlights / Page 4
5. LEARNING OBJECTIVES
At the end of this course you will understand and
be able to discuss the major tax developments
affecting individuals, businesses and trusts and
estates.
TCJA-Highlights / Page 5
6. INDIVIDUALS
Rates, Exemptions, Etc.:
•New income tax rates & brackets – There are still seven
brackets but the rates on some of these brackets have
been lowered. The new rates are effective for tax years
beginning after December 31, 2017 through December
31, 2025 - see attached schedules, these amounts will
be adjusted for inflation.
TCJA-Highlights / Page 6
10. INDIVIDUALS
Rates, Exemptions, Etc.:
• Standard deduction - This amount has essentially been
doubled. For single filers the standard deduction has
increased from $6,350 to 12,000 and for married couples filing
jointly, it has increased from $12,700 to $24,000.
• Personal exemptions - Previously taxpayers could claim a
$4,050 personal exemption for themselves, their spouse and
each dependent. This deduction had been eliminated under
the new law.
• Kiddie Tax – Under prior law, a child’s investment income over
$2,100 was subject to tax at the parents’ tax rate. Beginning in
2018, these earnings will be taxed at the rates that apply to
estates and trusts. Those rates for 2018 range from 10% on
income up to $2,550 and 37% over $12,500.
TCJA-Highlights / Page 10
12. INDIVIDUALS
Itemized Deductions:
• State and local tax (SALT) deduction:
–A taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for
married taxpayer filing a separate return) for the aggregate of:
• 1. State and local property taxes not paid or accrued in carrying on a trade or
business, and
• 2. State and local income, (or sales taxes in lieu of income taxes) paid or accrued in
the taxable year.
• Mortgage interest:
–In the case of taxable years beginning after December 31, 2017, and
beginning before January 1, 2026, a taxpayer may treat no more
than$750,000 as acquisition indebtedness ($375,000 in the case of married
taxpayers filing separately) . In the case of acquisition indebtedness
incurred before December 15, 2017 this limitation is $1,000,000 ($500,000
in the case of married taxpayers filing separately).
• Home Equity Interest:
–For taxable years beginning after December 31, 2017, a taxpayer may not
claim a deduction for interest on home equity indebtedness.
TCJA-Highlights / Page 12
13. INDIVIDUALS
• Medical expense:
–For taxable years beginning after December 31, 2016 and before January 1,
2019, the threshold for deducting medical expenses is 7.5% of AGI for all
taxpayers.
• Charitable contributions:
–An increase in the income-based percentage limit for certain charitable
contributions by an individual taxpayer of cash to public charities and certain
other organizations from 50 percent to 60 percent.
• Miscellaneous itemized deductions:
–All miscellaneous itemized deductions are no longer allowed, this includes
tax preparation and investment fees.
• Overall limitation:
–The new law repeals the overall limitation on itemized deductions.
TCJA-Highlights / Page 13
14. INDIVIDUALS – OTHER CHANGES
Other Adjustments:
• Alimony Deduction By Payor/Inclusion By Payee Suspended:
–Deduction for alimony and separate maintenance payments and inclusion of the
payments in gross income are repealed
–Effective for divorce or separation agreements executed or modified after 2018
–Modifications of agreements executed before January 1, 2019 must expressly
provide repeal of the alimony rules apply
• Repeal Of ACA Individual Mandate:
–Effective for months beginning after December 31, 2018
–Amount owed by any taxpayer under the individual health insurance mandate for
lack of minimum health insurance for themselves and their dependents is zero
–Individual mandate began in 2014 and imposed a penalty on individuals for each
month they failed to maintain minimum essential coverage
–No other Affordable Care Act provision is affected and certain employers are still
required to offer their employees minimum essential coverage
TCJA-Highlights / Page 14
15. INDIVIDUALS – OTHER CHANGES
Individual AMT Retained, With Higher AMT Exemption Amounts:
–Exemption amount and phaseout threshold for individuals temporarily increased
for years 2018 through 2025
–Regular tax deductions repealed, already not deductible for AMT
• State and local tax deduction
• Miscellaneous itemized deduction
–AMT exemption amounts (adjusted annually for inflation)
• $109,400 for married filing jointly (previously $84,500)
• $70,300 for single or head of household (previously $54,300)
Child Tax Credit Increased; Partial Credit For Non-child Dependents:
–Temporarily expanded for tax years 2018 through 2025
–Credit amount increased to $2,000 per qualifying child (previously $1,000)
• Qualifying child must not have attained the age of 17 by the end of the year
–$500 nonrefundable credit for qualifying dependents other than children
(previously no credit)
–The maximum amount refundable may not exceed $1,400 per qualifying child
–AGI threshold for credit phaseout
• $400,000 for married filing jointly (previously $110,000)
• $200,000 for single or head of household (previously $75,000)
TCJA-Highlights / Page 15
16. INDIVIDUALS – OTHER CHANGES
Estate And Gift Tax Retained, With Increased Exemption
Amount:
–Basic exclusion amount for the federal estate and gift taxes is
doubled from $5 million to $10 million (before adjustment for
inflation) temporarily for decedents dying and gifts made for tax
years 2018 through 2025
–Inflated amount for 2018 is 11.2 million
–This period provides the opportunity for individuals with large
estates to make gifts, especially if they had used up their existing
exclusion amounts
–Will the states follow suit?
TCJA-Highlights / Page 16
18. CORPORATE
Corporate Income Tax Rate:
–21% Flat Rate
–No Special Rate For Personal Service Corporations
Alternative Minimum Tax:
–Repealed For Tax Years Beginning After December 31, 2017.
–Minimum Tax Credit Is Refundable In Tax Years 2018 Through 2021.
TCJA-Highlights / Page 18
19. CORPORATE
Exclusions From Contributions To Capital:
Exceptions from tax-free corporate capital contributions were expanded
to include:
–Any contribution in aid of construction from a customer or potential
customer,
–Any contribution by a governmental entity or civic group.
Municipal tax abatements to a business to locate in a municipality are not
capital contributions and are not taxable.
TCJA-Highlights / Page 19
20. OTHER BUSINESS CHANGES
Excess business loss:
Excess business losses for noncorporate taxpayers are not allowed
for the tax year
Excess business loss = excess of taxpayer’s aggregate deductions for tax
year attributable to the taxpayer’s trades or businesses over sum of:
–Taxpayer’s aggregate gross income/gain for the tax year attributable to those
trades or businesses, plus
–$250,000 ($500,000 for joint return)
TCJA-Highlights / Page 20
21. OTHER BUSINESS CHANGES
Excess business loss:
Excess business loss incurred during a tax year is treated as a net
operating loss carryforward in later tax years.
–Applies to all aggregate income and deductions from all of a taxpayer’s trades or
businesses.
–Combine all such income and deductions from both spouses on a joint return.
Ordering rules:
1st – apply passive loss rules
2nd – apply excess business loss rules
TCJA-Highlights / Page 21
23. OTHER BUSINESS CHANGES
•Partnerships & S corporations – excess business
loss rules apply at the partner/shareholder level
•Rules apply to noncorporate taxpayers for tax
years beginning after 12/31/2017 and before
01/01/2026.
TCJA-Highlights / Page 23
24. OTHER BUSINESS CHANGES
Business Interest Deduction Limitation:
Business interest deduction limit =>
30% adjusted taxable income + business interest income
Disallowed business interest expense carries forward indefinitely (except for
partnerships and s corporations).
Exceptions:
Small businesses - 100% business interest is deductible if average annual
gross receipts for 3 prior tax years is less than $25 million.
Real property trade or business may elect out if it uses ADS depreciation
methods on real property.
Partnerships And S Corporations:
Business interest deduction limit is determined at the entity level.
Excess business interest and excess taxable income are passed through to
partners/shareholders for offset in future years.
TCJA-Highlights / Page 24
25. OTHER BUSINESS CHANGES
Net Operating Loss:
• NOL carryforward for an indefinite period
• NOL carryback is eliminated except for farm losses and certain
insurance companies
• NOL deduction = lesser of
–Total NOL carryforwards to the tax year plus NOL carrybacks to the tax
year; or
–80% of taxable income, computed without regard to the NOL deduction
TCJA-Highlights / Page 25
26. OTHER BUSINESS CHANGES
Modifications To Taxable Income To Compute NOL
For Current Tax Year:
• No deduction for 20% of qualified business income
• No deduction for foreign-derived intangible income
• No deduction for capital losses in excess of capital gains
• Sec 1202 50% gain exclusion on sale of small business stock held for at
least 5 years is not allowed
• Nonbusiness deductions limited to nonbusiness income
• Corporate dividends received deduction is computed without regard to
percentage limitations
Please note: There are additional rules for farming businesses and
insurance companies
TCJA-Highlights / Page 26
27. OTHER BUSINESS CHANGES
Other Adjustments:
• Domestic production activities deduction repealed
–The domestic production activities deduction under Code Sec. 199 is
repealed for tax years beginning after 2017
• Like-kind exchange treatment limited
–Like-kind exchanges are allowed only for real property after 2017
–Like-kind exchanges are no longer allowed for depreciable tangible
personal property and intangible and non-depreciable personal property
after 2017
• Five-year write-off of specified research or experimentation expenses
–R&D expenditures paid or accrued after 2021 must be amortized ratably
over five years
–Software development costs are treated as R&D expenditures for purposes
of the amortization provision
–R&D expenditures attributable to foreign research are amortized over 15
years
–Current law through 2021 allows current expensing of R&D
–R&D credit remains unchanged
TCJA-Highlights / Page 27
28. OTHER BUSINESS CHANGES
Business Deductions:
• Meals and Entertainment
–No deduction for entertainment expenses paid or incurred after December 31,
2017.
–Business meals are still 50% deductible.
• Employer-provided Meals
–50% deductible for expenses paid or incurred after December 31, 2017 and
before January 1, 2026.
–Nondeductible after December 31, 2025.
• Transportation And Commuting Benefits:
–No deduction for any qualified transportation fringe benefits paid or incurred after
December 31, 2017.
• Deductions Permitted:
–Expenses necessary to ensure the employee’s safety.
–Qualified bicycle commuting benefits that are includible in the employee’s gross
income (during tax years 2018 – 2025).
TCJA-Highlights / Page 28
29. OTHER BUSINESS CHANGES
Excess Employee Compensation Deduction Limit:
Generally, public companies may not deduct compensation over
$1 million for covered employees.
–Regarding the definition of “publicly held corporation”, the conference
committee report for the TCJA states “[t]he proposed definition may
include certain additional corporations that are not publicly traded,
such as large private C or S Corporations.”
Tax Cuts and Jobs Act expanded the definitions of compensation and
covered employees that are subject to the deduction limits.
Performance-based compensation and commissions are included in
total compensation subject to the deduction limit.
TCJA-Highlights / Page 29
30. OTHER BUSINESS CHANGES
Covered Employees Include:
• Principal Executive Officer (PEO), or individual acting in such capacity,
at any time during the year,
• Principal Financial Officer (PFO), or individual acting in such capacity, at
any time during the year,
• Three (3) highest compensated officers other than the PEO and PFO,
• Any covered employee for any tax year beginning after December 31,
2016,
• Any compensation paid to an employee’s estate or beneficiary after the
employee’s death, or to an ex-spouse under a qualified domestic
relations order.
TCJA-Highlights / Page 30
31. OTHER BUSINESS CHANGES
Business Tax Credits:
•Rehabilitation credit limited
–20% credit for qualified rehabilitation expenditures for certified historic
structures is now claimed ratably over a five-year period instead of all
in the year placed in service beginning in tax year 2018
–10% credit for qualified rehabilitation expenditures for non-historic
structures first placed in service before 1936 is eliminated beginning in
tax year 2018
TCJA-Highlights / Page 31
32. OTHER BUSINESS CHANGES
Accounting Method:
• Cash method of accounting
–A simplified $25 million gross receipts test beginning with tax year
2018 to determine whether taxpayers are:
• Able to use the cash method of accounting
• Not required to capitalize inventory
• Not required to apply the UNICAP rules
• Not required to use percentage of completion method for small construction contracts
–Taxpayer must apply for a change in accounting method on form 3115
to adopt any of the new methods
TCJA-Highlights / Page 32
33. PASS-THROUGH ENTITIES
New Deduction For Pass-through Income:
•New IRC sec 199A – qualified business income
Beginning in 2018 (until 2025) a 20% deduction is allowed for
qualified business income (QBI)
•Deduction is allowed for taxpayers other than C
corporations – which includes –
–Unincorporated businesses/sole proprietorships
–Individual owners of partnerships
–Individual owners of S corporations
–Trusts and estates
TCJA-Highlights / Page 33
34. PASS-THROUGH ENTITIES
The amount allowed as a deduction is the sum of:
The lesser of:
–Combined qualified business income amount –
• 20% of qualified business income (QBI) – plus
• 20% of qualified REIT dividends and qualified publicly traded partnership
income – or –
–20% of the excess of taxable income over net capital gains
Plus the lesser of:
–20% of qualified cooperative dividends – Or –
–Excess of taxable income over net capital gains
TCJA-Highlights / Page 34
35. PASS-THROUGH ENTITIES
The amount allowed as a deduction is further limited to
the excess of:
50% of the W-2 wages of the business– or –
The sum of –
–25% of W-2 wages, plus
–2.5% of the unadjusted basis of tangible, depreciable property
(including real estate) the depreciable period for which has not
ended
TCJA-Highlights / Page 35
36. PASS-THROUGH ENTITIES
Exceptions – The Deduction Is Not Allowed For:
• Service businesses – any trade or business where the principal asset is
the reputation or skill of one or more individuals – for example, the
fields of health, law, accounting, actuarial science, performing arts,
consulting, athletics, financial services, brokerage and investment
management services
• Architects and engineers are specifically excluded from the definition of
service businesses
TCJA-Highlights / Page 36
37. The service business exception
and the 50% of W-2 wages/2.5%
of tangible property limitations
do not apply if taxable income
is–
• Below $315,000 for married individuals
filing joint (phased out between
$315,000-$415,000)
• Below $157,500 for other individuals
(phased out between $157,500-$207,500)
PASS-THROUGH ENTITIES
TCJA-Highlights / Page 37
20% deduction reduces taxable income (not allowed in
computing adjusted gross income or AGI)
39. PASS-THROUGH ENTITIES
Repeal Of Partnership Technical Termination:
Beginning in 2018, new tax law repeals technical terminations
under code sec 708(b)(1)(b)
Under prior law, a partnership was considered terminated
(requiring filing of a separate return) if, within any 12-month
period, there was a sale or exchange of 50% or more of interests
in the partnership
TCJA-Highlights / Page 39
40. PASS-THROUGH ENTITIES
Carried Interests - New Holding Period Requirement:
• A carried interest is a profits interest generally received in exchange for
services
• Beginning in 2018, a 3-year holding period is required for capital gain
treatment
TCJA-Highlights / Page 40
41. COST RECOVERY
Increased Code Section 179 Expensing:
The provision modifies section 179 to:
• Increase the maximum amount a taxpayer may expense to $1 million
(currently $500,000) for taxable years beginning before January 1, 2023;
• Increase the phase-out threshold amount to $2.5 million (currently $2
million) for taxable years beginning before January 1, 2023;
• Index the amounts for inflation after 2018, and
• Expand the definition of qualified real property to include qualified
energy efficient heating and air-conditioning property acquired and
placed in service by the taxpayer after November 2, 2017
• Maximum amount for SUV’s over 6,000 lbs. remains $25,000 but will be
indexed after 2018
TCJA-Highlights / Page 41
42. COST RECOVERY
Temporary 100% Cost Recovery Of Qualifying Business
Assets:
Allows full and immediate expensing of short-lived
capital investments for five years.
–Acquired and placed in service after September 27, 2017 and before
January 1, 2023
–No longer required to be “original use property” however it must be the
taxpayers’ first use
TCJA-Highlights / Page 42
43. COST RECOVERY
First-year bonus depreciation:
100% bonus depreciation would apply to qualified property
acquired and placed in service on or after September 28, 2017.
For the 2017 tax year, taxpayers can choose to simplify their bonus
depreciation calculation by electing to apply 50% bonus depreciation to all
assets placed in service that year in lieu of applying 50% bonus to assets
placed in service before September 28, 2017 and 100% bonus to assets
placed in service on or after September 28, 2017.
• In later years, the first-year bonus depreciation deduction phases down, as follows:
– 80% for property placed in service after December 31, 2022 and before Jan. 1, 2024.
– 60% for property placed in service after December 31, 2023 and before Jan. 1, 2025.
– 40% for property placed in service after December 31, 2024 and before Jan. 1, 2026.
– 20% for property placed in service after December 31, 2025 and before Jan. 1, 2027.
For certain property with longer production periods, the beginning and end
dates in the list above are increased by one year. For example, bonus first-year
depreciation is 80% for long-production-period property placed in service after
December 31, 2023 and before January 1, 2025.
First-year bonus depreciation sunsets after 2026.
TCJA-Highlights / Page 43
44. COST RECOVERY
Recovery Period For Real Property Shortened:
• Qualified improvement property (QIP) is any improvement to an
interior portion of a building that is nonresidential real property if
such improvement is placed in service after the date such building
was first placed in service.
–QIP placed in service after December 31, 2017, is generally
depreciable over 15 years using the straight-line method and half-year
convention, without regard to whether the improvements are property
subject to a lease, placed in service more than three years after the
date the building was first placed in service, or made to a restaurant
building.
Qualified improvement property does not include any expenses attributable to the
enlargement of the building, an elevator or escalator, or the internal structural framework
of the building. These types of additions must be depreciated over the life of the
underlying business.
TCJA-Highlights / Page 44
45. COST RECOVERY
Depreciation Limits Of Listed Property:
• Section 280F has been amended to increase the annual depreciation
limits on passenger autos placed into service after December 31, 2017,
leading to annual limits of:
–$10,000 for the 1st year,
–$16,000 for the 2nd year,
–$9,600 for the 3rd year,
–$5,760 for each remaining year in the recovery period.
–The taxpayer is then entitled to deduct $5,760 each year until the auto is
fully depreciated.
TCJA-Highlights / Page 45
46. COST RECOVERY
Recovery Period For Real Property Shortened:
• For property placed in service after December 31, 2017, the ADS
recovery period for residential rental property is shortened from 40
years to 30 years.
• For tax years beginning after December 31, 2017, an electing
farming business— I.E., A farming business electing out of the
limitation on the deduction for interest—must use ADS to depreciate
any property with a recovery period of 10 years or more.
TCJA-Highlights / Page 46