New Tax Law - 6 Month AnniversarySubmitted by AssetGrade, LLC. on June 27th, 2018
Submitted by Susan Powers on June 27, 2018
This week was the 6 month anniversary of the Tax Cuts and Jobs Act (‘TCJA’) designed to decrease the taxable rate for corporations and individuals, and significantly limit allowable deductions. Since this change to the Tax Code was one of the largest since the Reagan era, the Internal Revenue Service will need to publish many regulations and advisories in the coming months to better clarify provisions of the TCJA.
The changes to the tax code present both potential opportunities and serious implications for individuals and businesses. Start planning now to capitalize on changes that have a positive impact, such as new rules about bonus depreciation, and adjust for potential negative consequences, such as reduced deductions.
You may decide to restructure your business, or find that you want to make investments that take advantage of new deductions. If you are self-employed or a small business owner, the income of your spouse has more impact than ever, so you may need to adjust how you keep financial records.
Talk with your CPA and financial advisor early to understand your options. Get tax tips directly from the IRS about provisions under the new tax reform law. Tax tips are written in plain language and can be subscribed to using the IRS’s “Tax Tips” email subscription program.