Marc Azar Provides Insights on Uncertainty Regarding the Tax Cuts and Jobs Act
Jul 11,2018
In a recent collaboration with Accounting Today, Smith & Howard Tax Partner, Marc Azar, discussed how CPAs are planning around the recently enacted Tax Cuts and Jobs Act of 2018. “We’re having conversations with all our clients as to the effects of tax reform on their 2018 taxes. It’s enough to get their 2017 taxes done, let alone figure out the implications of the TCJA on their 2018 taxes,” said Azar. To read Marc’s article, Two Tax Seasons at Once, click here.
A Review of the New Tax Law: What Lenders Should Know
Jun 25,2018
A sweeping new law, the Tax Cuts and Jobs Act (TCJA), was passed in late 2017 with significant implications for businesses. Lenders need to be aware of these changes and understand the potential ramifications for their borrowers — both positive and negative — so that they can help customers take full advantage of any new tax breaks and minimize the adverse effects of provisions that will generate additional revenue for the IRS. What is the corporate rate? Under prior law, C corporations paid graduated federal income tax rates as follows: 15% on taxable income of $0 to $50,000, 25% on taxable income of $50,001 to $75,000, 34% on taxable income of $75,001 to $10 million, and 35% on taxable income over $10 million. Personal service corporations (PSCs) paid a flat 35% rate. For tax years beginning in 2018 or later, the TCJA establishes a flat 21% corporate rate. That rate...
2018 Tax Cuts & Jobs Act Overview
Mar 27,2018
On December 22, 2017, the most sweeping tax legislation since the Tax Reform Act of 1986 was signed into law. The Tax Cuts and Jobs Act of 2017 (TCJA) makes small reductions to income tax rates for most individual tax brackets and significantly reduces the income tax rate for corporations. It also provides a large new tax deduction for owners of pass-through entities and significantly increases individual alternative minimum tax (AMT) and estate tax exemptions. And it makes major changes related to the taxation of foreign income. It’s not all good news for taxpayers, however. The TCJA also eliminates or limits many tax breaks, and much of the tax relief is only temporary. Here is an overview of some of the key changes affecting individual and business taxpayers. INDIVIDUALS The TCJA includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here are...
Tax Reform Update | December 19, 2017
Dec 19,2017
Update: On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act into law. On December 19, the House approved the final tax bill, sending it to the Senate who approved it shortly afterwards. The details of the final bill are included below and come after weeks of negotiations and revisions between the House and Senate.Timing: Under the conference bill, many tax provisions for individual taxpayers, including the new tax rates, will go into effect January 1, 2018, and will expire at the end of 2025. Without legislative action by 2025, the law will go back to the way it is as of this date (12/19/17). Corporate Rate: The corporate rate would be cut to 21 percent starting January 1, 2018.Pass-through Taxation: Pass-through entity owners that meet certain conditions would be eligible for a 20 percent deduction on their business income. Pass-through owners who file jointly and earn at least $315,000 in business profits are subject to...
An Update on President Trump’s Tax Reform Plan
Jun 07,2017
President Trump’s one-page tax reform plan issued in April set out four goals:Grow the economy and create millions of jobsSimplify our burdensome tax codeProvide tax relief to American families, especially middle-income familiesLower the business tax rate from one of the highest in the world to one of the lowestHe also laid out general goals for individual and corporate reform that included reduction in the number and percentage of tax brackets, simplification to include eliminating targeted tax breaks that benefit wealthy tax payers, repeal of the death tax and a 15% business tax rate among other reforms. The proposal in its entirety is included in the download available by clicking the PDF icon above.The process for developing the specific details for his proposal and moving it forward includes listening sessions with stakeholders and continued work with the House and Senate to develop legislation that can pass both chambers. It’s that “work...
Technology’s Post-Election Future Under a Trump Administration
Mar 10,2017
SummaryThe technology industry is no stranger to Washington D.C. In 2015, the five biggest U.S. tech companies spent $49 million on lobbyists, outspending the five largest banks by more than $29 million, according to data compiled by the Center for Responsive Politics. A New York Times article, appropriately titled, “Obama Brought Silicon Valley to Washington,” describes the legacy of former President Obama as one which championed technology “as an engine to improve lives and accelerate society more quickly than any government body could.”But that was then, and this is now. With a new president recently installed in the White House, Silicon Valley’s relationship with Washington has hit the reset button.To quote former Yahoo CFO Sue Decker, “Silicon Valley and D.C. need each other.” In other words, tech leaders have come to realize that maintaining an open line of communication with the White House is critical to their long-term success.DetailsTax Reform:While...

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