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Exceeding Expectations. Always. — Business Advisors and CPAs

Tax Cuts and Jobs Act - The Opportunities and Challenges

A seminar presented by BatesCarter

Presenters were

J. Ronald Bracewell, Jr., CPA, ABV and Managing Partner

Randall W. Jessup, CPA and Partner

Russell D. Hopkins, CPA and Partner

 

The recent seminar presented by BatesCarter provided a high-level overview of provisions contained in the new tax law. The presenting partners emphasized that while the law has been passed, the regulations have not yet been written.

Ron Bracewell began the presentation with a review of the history of tax rates and the status of state tax laws and trends. He spoke on the myriad of opportunities for individuals and business.  “Tax planning and projections will be more important than ever” according to Ron.  An important first step will be dropping 2017 actual results into a 2018 tax projection model to provide an initial assessment of the effects of the tax law changes.  From that point, BatesCarter will work with clients to develop strategies to maximize the opportunities in the tax law.

Randy Jessup discussed individual taxation and depreciation changes under the Tax Cuts and Jobs Act of 2018. Randy addressed the significant changes to individual taxation under the new law, noting that “Some of these changes will decrease your tax bill, and some of the changes will stand to increase your tax bill, though, overall, most people should see a decrease in their overall individual tax bill”.  To demonstrate, Randy analyzed a sample of 2016 tax returns to determine the effects of the new law.  Under each of the samples, the taxpayer paid less overall tax under the new tax bill; sometimes a very significant tax savings.

Randy also explained how the changes affect the different filing statuses.  He spoke on the changes to the Kiddie Tax as well as standard and itemized deductions, charitable deductions, child tax credit, AMT, business losses, Net Operating loss, 529 plans, and changes to depreciation and the recovery periods.

Rusty Hopkins discussed the new tax rate for U.S. Based C-Corporations, a flat rate at 21% for calendar years, and a blend of old and new for fiscal year ends. Rusty also spoke on the new and complex, pass-through entity deduction, Code Section 199A.  He presented examples of Qualified Business Income (QBI) deductions for various business scenarios.  Rusty also spoke on estate and gift taxes, explaining what individuals need to consider when making estate and gifting decisions.

To wrap up the seminar, Rusty explained how BatesCarter helps its clients by reviewing each individual situation to determine what is in the client’s best interest when considering these changes.