The Biden administration recently announced plans to raise taxes on corporations and other businesses, including tax increases on some pass-through business owners. With these tax increases a possibility, it may be wise to start thinking about steps and strategies to lessen the impact of hikes of a tax rate. These options generally look to accelerate income and delay deductions, which is the opposite of conventional wisdom.
Topics: Taxes, Tax Reform, pass-through entities, C Corporation
The new Biden administration has many priorities and some ambitious goals. Perhaps none is more immediate than an additional stimulus package to mitigate the deepening impact of a pandemic that has dragged on for nearly a year. After months of declines, initial jobless claims rose again in December to 782,000, which remains above the previous record of 665,000 set in March 2009 (excluding years prior to 1967 when unemployment was measured differently). State legislatures may also implement additional spending cuts in the coming months that could also lead to deleterious effects on unemployment.
With these challenges in mind, it is time to look at the Biden administration’s “American Rescue Plan” to aid in the economic recovery.
Topics: IRS, Taxes, Election, Tax Reform, COVID19, Coronavirus, Stimulus, #taxplan, Covid vaccine, loans and grants
Amid a chaotic week in Washington D.C., final election results came in that determined the composition of the Senate. Both Georgia Senate seats went to the Democratic candidates, which tipped the balance of power in the Senate to the Democratic party, with Vice President-Elect Kamala Harris presiding as the presumed tie-breaking vote in a chamber evenly split 50-50. This assumes that the Senate Democrats vote along party lines, which is far from certain.
Topics: election year, IRS, Taxes, Election, Tax Reform, senate, COVID19, Coronavirus, Republican Party, Biden, Harris, #taxplan, Filibuster, democratic party, Legislative Session
Taxpayers are still feeling repercussions far and wide from the extensive changes to the tax code made by the 2017 law known as the Tax Cuts and Jobs Act (TCJA). Because the TCJA was passed so quickly, many of its nuances required clarification, and this year’s tax reform-related updates are certain to affect your company’s planning. While a fix for qualified improvement property is still in the works, the following provisions have received final and proposed regulations in 2019.
Topics: tax, Taxes, Tax Reform, Tax Cuts and Jobs Act, TCJA
The IRS released proposed regulations to provide taxpayers with guidance on applying a tax reform provision related to business interest expense deductions. The 2017 tax law commonly known as the Tax Cuts and Jobs Act (TCJA) set new limits on business interest expense deductions for most businesses, including C corporations and partnerships.
Topics: Tax Reform, Tax Cuts and Jobs Act, TCJA, tax reform bill, Business Interest Expense Limitation, Section 163(j)
The term “tax planning” holds more weight in 2018 thanks to the Tax Cuts and Jobs Act (TCJA). The tax reform bill was passed at the end of last year, and most of its modifications became effective in 2018. These changes present a unique opportunity for you to look at your taxes in a new light, explore new benefits, and with any luck, pay fewer taxes. Below highlights some key areas of impact that may require a change in your tax planning and strategies.
Topics: tax planning, year-end tax planning, Tax Reform, Tax Cuts and Jobs Act, TCJA, 2019 tax planning
Life sciences companies have many new things to consider in light of the changes made by the 2017 tax legislation known informally as the Tax Cuts and Jobs Act (TCJA). Expensing elections for capital expenditures now have a broader scope, deductions for interest expense are subject to new limitations, and expenses for research and development will be subject to new rules for cost recovery. Several international tax developments may also affect how life sciences companies have traditionally structured activities related to research and development.
Topics: life sciences, Tax Reform, Tax Cuts and Jobs Act, TCJA, tax reform bill
If there are winners and losers under the new tax reform law, pass-through entities—S corporations, partnerships, LLCs, and sole proprietorships (collectively, pass-through entities)—can count themselves among the winners. The tax reform law introduced as the Tax Cuts and Jobs Act (TCJA) is primarily designed to provide tax cuts for businesses of all types, and it delivers on that goal. It also adds complexity, and in some circumstances, the potential tax savings for C corporations may outpace the savings afforded to pass-through entities. This formerly unorthodox scenario and many other new provisions for pass-through entities require careful study to ascertain the full impact of TCJA on such businesses.
Topics: Congress, Tax Reform, tax reform bill, pass-through entities
Much of the attention around tax reform has been on the tax side of the equation—the corporate tax cuts, the changes to business tax deductions, and the lower tax rates for individuals. But the tax law comes with accounting considerations as well that must be addressed earlier than you may expect.
Topics: Tax Reform, Tax Cuts and Jobs Act, TCJA, Accounting Issues
The new tax law introduced as the Tax Cuts and Jobs Act (TCJA) includes considerable changes to the Internal Revenue Code that will impact the private equity and venture capital industries. The majority of the changes are effective Jan. 1, 2018, but some of the changes will have an impact on 2017 taxes as well. Private equity and venture capital firms should understand how the changes will impact their business, including the impact to their funds, investors, underlying investments, current and future tax structuring, as well as their management company. Firms should develop a course of action to address the changes imposed by the TCJA that will affect areas such as effective tax rates, preferred operating and acquisition structures, and the potential need for additional K-1 disclosure.
Topics: Congress, Tax Reform, Partnership Audit Rules, Partnership Audit Regulations, tax reform bill, Partnership Audit, partnership audit regime
