Nearly one year after the Tax Cuts and Jobs Act (TCJA), tax reform is still making headlines. We continue to learn more about its broad implications. Whether your previous tax filing posture was straightforward or complex, you will be impacted by the myriad of changes to the tax code.
Now more than ever, it is imperative to thoughtfully consider year-end tax planning opportunities, ensuring you are taking advantage of new tax strategies, staying compliant with new regulations and considering structures to help minimize taxes for future years.
TwoÂ Tax LettersÂ from REDW are intended to assist you in that effort. The 2018 Year-End Tax Planning Letter for Individuals discusses key considerations for individual tax planning, and the 2018 Year-End Tax Planning for Businesses is designed for all businesses, whether C corporations, or S corporations, partnerships, or LLC companies.
Tax planning for individuals also requires consideration of the tax consequences from any businesses conducted directly or indirectly by individual owners. For information on those areas, we encourage you to read our Year-End Tax Planning for Businesses Letter.
Youâ€™ll find valuable information to explain these common tax situations:
- Controlling income and deductions
- Sale of a residence
- Retirement plan distributions
- Business meals and entertainment
- State and local deductions
- Roth and education IRAs
- Reduction of the corporate tax rate
- The Section 199A deduction for pass-through business owners
- New bonus depreciation rules
As we continue to await guidance and regulations in certain areas, we encourage you to routinely visit our website for additional updates to guide you through the year-end tax planning. By subscribing to our blog, you can receive timely alerts of tax news and other helpful financial information.