The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of businesses. The changes are extensive, and this blog provides a high-level overview of some of the highlights to keep you informed. Due to the sweeping nature of the changes and the need for continued guidance, we’d like the opportunity to have a personalized conversation with you now to discuss planning opportunities for your specific situation.
Additional conversations and tax projections are likely necessary to ensure we maximize your tax benefits. Please call our office at your earliest convenience to schedule a meeting.
Please call our office at your earliest convenience to schedule a meeting. 262-358-8297
Bonus depreciation and Sec. 179 expensing of fixed assets
Bonus depreciation and Sec.179 expensing of property have been available in varying amounts for quite a while. The new tax law has increased the bonus depreciation percentage to 100% until 2023, when it will decrease by 20% per year until it reaches zero. Bonus depreciation now applies to both new and used qualified property. The Sec.179 expense limit is now $1 million of allowable expensing with a total purchase threshold of $2.5 million. If you purchase more than $2.5 million in eligible fixed assets during the taxable year, the expense limit allowed will be reduced.
The higher limits and expansion in the definition of property that qualifies for these deductions allow for tax planning opportunities. As part of your planning, we’d like to understand your asset purchasing behavior and plans for the future so we can maximize these deductions for you.
As part of your planning, we’d like to understand your asset purchasing behavior and plans for the future so we can maximize these deductions for you.
Tax Reform has taxpayers scrambling for strategies to lower their tax liability. A spousal business partnership may be one solution.
Key Tax Benefits:
Corporate Fitness programs have been around for over a quarter of a century. It increases employee morale, , productivity and decreases absenteeism.
If you are thinking about implementing an business fitness center (gym or athletic center) for recruitment and retention purposes, then you will be ecstatic to know you will may also qualify for a tax deduction. However there are rules you must follow in order to qualify for this tax deduction.
Some of the widest range of tax reforms and increases are to start over the next 4 months that generated over 1 billion dollars to the US treasury annually to aid in balancing the budget after major spending on welfare programs for unemployed individuals due to the depression, amongst the large number of new taxes were the New Electricity Tax, and Special Excise Taxes on Soap, Automobile Tires, Chewing Gum, New Admissions Tax at the Movie Theaters and Sports Venues, Gift Tax and Higher Personal Taxes.
June 6, 1932 : The first federal gasoline tax ( All US States had a gas tax prior to this starting with Oregon in 1919 ) was created with the enactment of the Revenue Act of 1932 with a tax of 1 cent/gal.
Fast forward to today we pay 18.40 cents/gal for gasoline and 24.40 cents/gal for diesel. Rumor has it that our current President is backing a plan to increase the Federal tax by 35 cents/gal and dedicate those funds to fund his infrastructure plans (building "The Wall").
Tax reform changed the rules of the game when choosing your best tax structure.
In looking over the possibilities, we note that a properly structured spousal partnership could be your best choice.
Here are the tax benefits to you:
Here are the potential issues:
If you would like to discuss how your choice of business entity works in today’s tax environment, please don’t hesitate to contact us.
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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.