We now have the long awaited tax reform promised by the Trump Administration and Republican Congress known simply as the “Tax Cuts and Jobs Act”. This 500+ page legislation makes major changes to our income tax system but also retains much of the infrastructure and concepts in our current law and regulations.
By far the biggest impact of the new law is the reduction of the corporate income tax rate. Entities structured as S corporations, partnerships and sole proprietors will also benefit from some tax relief but not to the extent of a traditional corporation.
The impact on individuals will vary based on your particular situation. We liken it to a chess board where all the chessman have been moved with many pieces having new rules and limitations to follow. While the new law will simplify the filing for millions of taxpayers, the complexity for many will increase too. The new law has clearly created winners and losers for various taxpayers with both challenges and opportunities to manage your taxes in the most efficient manner.
Click on the links below for an overview and analysis of the new legislation.
Please contact us before taking any action as the rules can be complex and the regulations have not even been drafted yet. As always, we are here to serve you and help you develop a plan and strategies to manage your taxes.