Welcome to our Tax Reform Resource Center.
We are keeping an ear to the ground so that when updates and regulations occur surrounding the Tax Cuts and Jobs Act, you will know first. Check back here and follow us on social media to receive breaking news as it occurs.
Have questions about how the legislation affects your personal and business tax planning? Contact your local Blue & Co. tax advisor.
With the passing of the Tax Cuts and Jobs Act (TCJA) in late 2017, many businesses, business owners, and their advisors are evaluating a variety of topics such as the qualified business income deduction, optimal accounting method for taxation, entity structure, and more favorable fixed asset expensing. However, expense reimbursement policies may be something your […]
For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) creates a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduces individual income tax rates, which apply to sole proprietorships and pass-through entities, […]
Provisions in the Tax Cuts and Jobs Act (TCJA), passed late in December 2017, eliminated the deductibility of qualified transportation expenses incurred by business employers. After December 31, 2017, amounts paid or incurred for qualified transportation fringe benefit or parking facilities used in connection with qualified parking will no longer be deductible business expenses. This […]
What is the excess business loss limitation under code section 461 (I)? In its simplest form, it is a fourth disallowance provision behind the three that we already have in order for a taxpayer to deduct business losses: Tax basis At-risk basis Passive activity rules If those three are met, all of your business income […]
By Miranda Aavatsmark It’s 11:00 p.m. on New Year’s Eve, 2017 and I’m ready for a relaxing evening. My day started with checking my email and fretting that something was left undone after having had a frantic Friday at the office. We worked diligently sending last minute estimate vouchers to clients, before the UofL vs. […]
If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t necessarily all positive. It also means you were essentially giving the government an interest-free loan. That’s why a large refund for the previous tax year would usually indicate that you […]
Now is the time to start tax planning for 2018 for maximum tax savings. It’s especially critical to get an early start this year because the Tax Cuts and Jobs Act (TCJA) has substantially changed the tax environment. Many Variables A tremendous number of variables affect your overall tax liability for the year. Looking at […]
Normally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like-kind” exchange. What is a like-kind exchange? Section 1031 of the Internal Revenue Code allows you to defer gains on real or personal property used in a […]
Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. There are two still-available tax credits for small businesses that can provide certain employee benefits. 1. Credit for paying health care coverage premiums The Affordable Care Act (ACA) offers a credit to […]
On Friday, February 9, Congress passed, and the President signed into law, H.R. 1892, the “Bipartisan Budget Act of 2018” (the Budget Act, P.L. 115-123). The major reason for the passage of this budget act was to provide a continuing resolution to fund the federal government through March 23; however, this two-year budget contains a […]
Individual taxpayers who itemize their deductions can generally deduct either state and local income taxes or state and local sales taxes. The ability to deduct state and local taxes — including income tax, property tax, or sales taxes — had been on the tax reform chopping block, but it ultimately survived. However, for 2018 through […]
The Tax Cuts and Jobs Act (TCJA) imposes a limit on deductions for business interest for taxable years beginning in 2018. The limit, like other aspects of the law, has raised some questions for taxpayers. In response, the IRS has issued temporary guidance in Notice 2018-28 that taxpayers can rely on until regulations are released. […]
The Tax Cuts and Jobs Act (TCJA), which was signed into law in December 2017, contained numerous changes to cost recovery methods for capitalized assets. These changes provide manufacturers with an unprecedented ability to accelerate depreciation and lower income tax liabilities. One of the most widely discussed provisions of the TJCA was the extension and […]
With rising healthcare costs, claiming tax deductions for these expenses can be more important than ever. However, there is a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced this threshold. What expenses are eligible? Medical expenses may be deductible if they […]
The recently enacted Tax Cuts and Jobs Act (TCJA) includes a number of changes to the rules governing the choice of accounting methods by taxpayers. In certain situations, the TCJA raises the gross receipts limit used to determine which taxpayers can use the cash method of accounting: The exception from the uniform capitalization (UNICAP) rules […]