KRS partner Jerry Shanker, CPA/ABV, CFF, recently authored “Significant Provisions of the Tax Cuts and Jobs Act Affecting Closely Held Businesses and Their Owners,” in the August 2018 edition of the New Jersey State Bar Association’s Business Law Section Newsletter.
The Tax Cuts and Jobs Act (TCJA) made significant changes to the Internal Revenue Code of 1986 and included three provisions which impact closely held businesses and their owners:
- Reduction of corporation and individual tax rates
- Introduction of Section 199A, which provides for a tax deduction of 20 percent of qualified business income, subject to limitations and exclusions
- $10,000 annual limit on deduction of real estate taxes and state and local income taxes.
Shanker’s article provides a general overview of these provisions, and examples to help business owners understand what they should consider in their tax planning.
As Shanker noted in the article, “Hastily enacted, the TCJA contains many provisions requiring clarification. Before taking any action, business owners should consult a tax advisor to determine the best course of action based on the taxpayer’s specific fact pattern and the applicability of the TCJA.”