The Tax Cuts and Jobs Act of 2017 was the most substantial overhaul of the U.S. tax code in decades. Two years later, the IRS and the Treasury Department are still issuing clarifying guidelines because the ramifications for individuals, businesses, and estates and trusts have been so complex. High net worth individuals and families, while benefiting from a higher ceiling on federal estate and gift tax exclusions, also must plan more carefully for charitable giving and capital gains, among other tax situations. Businesses are now dealing with revised and limited expense deductions while also benefiting from a higher limit on depreciation and capital expenses and the new Qualified Business Income (QBI) Deduction for pass-through entities. There’s a lot to navigate with Tax Reform. Windham Brannon’s Tax Reform knowledge center curates some of our best resources to help you maximize tax savings under the new law, without any surprises.
Entity selection has always mattered in how a business and its owner(s) or partners are taxed. With Tax Reform, new laws and tax brackets require a more careful evaluation of entity type. Whether you’re starting a new business or considering a change in entity type, Windham Brannon can compare the taxable impact of a C-Corp versus S-Corp or LLC and map out a corporate/flow-through structure. We can also work with business owners on distribution planning and structure alternatives.
One of the new additions to the tax law, the Qualified Business Income (QBI) deduction – also known as the 20% pass-thru entity deduction – created favorable tax treatment for many taxpayers. Figuring out the rules for qualification and calculating the amount of the deduction gets complicated. Windham Brannon can determine eligibility, wage base and qualified property limitations, and also advise on reasonable compensation.
Transparency around foreign accounts reporting and earning money overseas gained more attention thanks to Tax Reform. If your career takes you to foreign countries or you have investments in international bank accounts, Windham Brannon can assist with repatriation planning, transition tax, GILTI analysis, and foreign structuring.
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The best tax planning occurs year-round, and that is truer now than ever before since the passage of Tax Reform. Windham Brannon advises high net worth individuals, estates and trusts, not-for-profit institutions, and businesses on forward-thinking tax strategies that take advantage of current benefits while keeping an eye on potential changes due to sunsetting laws or Congressional amendments.
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