31 Oct CPA CLIENT BULLETIN SELECT Nov 2018
Smart tax, business and planning ideas from your Trusted Business AdvisorSM November 2018
Year-end planning under the new tax law
The Tax Cuts and Jobs Act of 2017 (TCJA),passed at the end of last year, generallytook effect in 2018. Therefore, the fourthquarter of this year provides the first real opportunity for year-end planning under what has been called the most important tax law passed in more than 30 years.
Broadly, the TCJA lowered income taxrates for individuals and for businesses.As you’ll read in this issue of the CPA Client Bulletin, the standard deduction has been substantially increased, but many deductions have been trimmed or eliminated, and some innovative tax benefits have been introduced.
Still, much of the tax code remains the same, and so does year-end planning. Retirement plans are largely unchanged. Business equipment purchases still qualify for favorable tax treatment, although the exclusion amount has doubled (a big tax break), and the federal estate tax is still combined with the gift tax. The articles in this issue will provide tips for blending new tax-saving opportunities with old, reliable strategies.