by Bill Bodnar, CPA, MST, Tax Director
The Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017. The Act represents the most comprehensive change to the Internal Revenue Code since 1986. There have been a number of changes affecting all taxpayers, and to assist in identifying those which may impact you, we have put together a summary of the major provisions from the new legislation. Generally, most of these changes will become effective in 2018.
The new legislation will produce both opportunities and drawbacks that differ from taxpayer to taxpayer. Many of the specific rules for implementing the new laws will require further guidance from Treasury, which will be issued in 2018. We certainly understand that each taxpayer is unique, so we look forward to working individually with each of our clients to ensure the proper treatment of these new rules and to implement the most advantageous tax approach. Please feel free to contact us at H2R CPA with any follow-up questions or insight that may be of interest to you.
Highlights and some details of the new law are provided in the attached letter.
Contact H2R CPA at 412-391-2920 or firstname.lastname@example.org for additional details or interpretation related to the Tax Cuts and Jobs Act, as needed. Our tax team members would be pleased to assist you with your tax planning.
by Rick Tonarelli, CPA, Tax Senior Manager
The Tax Cuts and Jobs Act (H.R. 1) has been approved by Congress and awaits the President’s signature. Highlights of both the corporate and individual aspects of the new law are provided below.
Note: Leaders in the Congress have signaled that a technical corrections bill may be necessary in 2018 to “fix” drafting mistakes in H.R. 1.
by Paul K. Rudoy, CPA/PFS
We are in a period of uncertainty with two tax bills proposed and nothing finalized. However, there are two items that every taxpayer should look at before year-end: state & local tax and charity.
State and local tax deductions (SALT)
The State and Local tax deduction is very likely going away. Therefore, if you pay state and local estimated tax payments, you should consider paying your fourth quarter estimated tax payments in December as opposed to waiting until January 15. You might also want to consider paying the first quarter of 2018’s expected estimated tax payment in December to get a deduction that will not exist any longer.
Of course nothing in taxation applies to everyone. If you are an Alternative Minimum Tax (AMT) payer, paying your SALT payment earlier will not help you. Also, if you stretch to paying your April 2018 payment in December 2017, take a look and see if this will cause an over payment that could increase your taxable income for 2018.
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