Director, Tax Strategies
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, the most significant tax legislation to be enacted in more than 30 years. The Act will affect all taxpayers, including individuals and businesses. While it has the potential to create a great deal of opportunity for you and your business, it also brings a level of uncertainty.
We are committed to providing information and resources to help you understand what the law means for you, as well as to keeping you informed as developments occur throughout the year. So be sure to check back over the next several months, as we will be adding to this page.
We invite you to contact our Tax Strategies team with any questions or for a conversation about how the legislation will impact you specifically.
The IRS has begun to issue guidance on various components of the Tax Cuts and Jobs Act which may have an important impact on your 2018 year-end tax planning process and beyond. Here are updates on six key areas that affect many businesses.
On August 8, 2018 the IRS issued long-awaited proposed regulations related to the new 20 percent deduction for qualified business income flowing from pass-through businesses and sole proprietors. The proposed regulations provide answers to many questions that have existed since enactment of the Tax Cuts and Jobs Act, but in doing so, have made it clear that the calculation of the deduction will, in many cases, add significant additional complexity to tax returns.
On Thursday, August 23, 2018 the IRS issued proposed regulations that would have a broad impact on reducing the amount of the deduction for charitable contributions when the individual receives a state tax credit, without regard to the timing of the origination of the credit program. For Pennsylvania residents that currently participate in the Pennsylvania EITC and OSTC programs, this would be a significant impact.
On June 21, 2018, the United States Supreme Court issued its decision in South Dakota v. Wayfair, which overturned decades of physical presence precedent regarding sales tax nexus.
It is difficult to determine whether the Court is leaning toward a pro-taxpayer or a pro-state position on the issue of whether physical presence is required to create sales tax nexus for out-of-state sellers.
Is a meal with an employee or a customer considered “entertainment” or a “business meal?” Should it make a difference? Provisions within the Tax Cuts and Jobs Act enacted in December have raised an issue for which a clear answer to this question does not currently exist, and it could have a material economic impact on businesses.
The flat 21 percent rate on C Corporation income that was enacted as part of the Tax Cuts and Jobs Act has led many pass-through business owners to question whether a conversion makes sense. However, there are numerous factors to consider beyond the tax rate, and they are highly dependent on your company’s individual circumstances.
One of the most important impacts of the tax reform legislation involves unrelated business income, which will certainly affect a tax-exempt organization’s tax filings and potentially require additional disclosure in its financial statements. Here are the key points in question for unrelated business income.
State and Local Tax Alert: Pennsylvania’s EITC Program Provides Taxpayers with Safety Net
As part of the federal tax reform bill, the state and local tax itemized deduction was limited to $10,000. Fortunately, Pennsylvania has been a pioneer in the area of creating an alternative structure for the payment of tax liabilities through its Educational Improvement Tax Credit Program.
The Tax Cuts and Jobs Act – What It Means For You and Your Business
A summary of the major provisions that could impact your business and personal tax liability.
Tax Planning Guide for Tax Year 2017
Strategies to make the tax laws work for you when filing your 2017 taxes.
Tax Cuts and Jobs Act Webinar: What Not-For-Profit Organizations Need to Know
Held on Tuesday, February 13
Watch the rebroadcast:
Tax Reform Seminar
Held on Monday, January 22
Watch the videos from the seminar:
Information contained here should not be construed as the rendering of specific tax, accounting, or other advice. Material may become outdated and anyone using this information should research and update to ensure accuracy. In no event will the firm be liable for any damages, direct, indirect, or consequential, claimed to result from use of the materials contained here. Readers are encouraged to consult with their advisors before making any decisions.