Summary of Tax Changes Now Available
The Tax Cut and Jobs Act (TCJA) signed into law in late 2017 made some of the most significant tax regulation changes in decades and created many new planning opportunities for contractors. Changing entity types, accounting methods, new deductions for qualified businesses, new depreciation alternatives and new tax incentives for qualified investments are just some of the provisions in the TCJA that will require careful analysis and proactive planning for CPAs and their contractor clients.
IMC has compiled a summary of those changes potentially impacting our construction clients for consideration. In the interest of timing, this document only provides an overview for further consideration for planning in 2018 and beyond. Our intent is to follow this summary with more in depth guidance and practical application materials as we work through implementation of the new regulations and additional information becomes available.
The following subject areas are discussed in detail in our 2019 release.
- Accounting Method Changes for Large and Small Contractors
- What is Section 199A and Who Benefits?
- How is “qualified business income” defined?
- How is a “specified service trade or business” defined?
- When do the limitations apply?
- How do we apply the 199A?
- Wage / Property limitations
- Aggregation rules
- Other Considerations Under TCJA
- Excessive Business Losses
- Choosing Between S Corp versus C Corp
- Tax Planning Tips Around Net Operating Losses, Bonus Depreciation and Section 179
- Opportunity Zones
Be sure to contact Chris Iannuzzi, CPA or your Iannuzzi Manetta tax professional at (248) 641-0005 with any questions that may help your company identify and take action on areas that may affect your tax situation.