New federal income tax law now in effect

From the Wilson Elser firm.

While tax planning and advice is specific to each situation, there are several areas on which you should consider seeking advice from your accountant and tax advisor, including the following:

The new 21% income tax rate for C corporations is much lower than the rate applicable for other forms of business. Thus, if you are a principal in a pass-through enterprise (regardless of whether it is a sole proprietorship, a general or limited partnership, an S corporation or a limited liability company), it is imperative that you meet with your tax advisor as soon as possible; some decisions need to be made and implemented on or before March 15, 2018, to determine whether you should convert your enterprise to a C corporation. The answer requires careful analysis and a comparison of alternatives. There is no one answer that applies to everyone.

If you are a principal in a pass-through business, a new deduction of up to 20% of your “qualified business income” may be available regardless of your marginal tax bracket. The determination of whether and to what extent non-corporate business owners may qualify for the new deduction is anything but simple. Accordingly, you should meet with your accountant and tax advisor to review and analyze the operations, payroll, assets, income and deductions of your business in order to ascertain your eligibility for claiming the new deduction.

See the full post from Wilson Elser online.