Fall is fast approaching, which means filing season is just around the corner. Recall that last year Congress passed the Tax Cuts and Jobs Act (TCJA), with implications for both individuals and businesses alike. Several provisions of the Act should be on your radar, so now is a good time to reach out to your HRH advisor to discuss how you and/or your business might be affected. Also, be sure to check out the Tax Planning Guide on our website for more tax planning ideas.
The IRS recently issued major guidance on Tax Reform provisions, the highly advertised “Qualified Business Income Deduction” (Code Section 199A). The proposed regulations answer some of the questions raised about the application of this complex provision. Generally, this provision allows owners of pass through businesses, including sole proprietors, to deduct up to 20% of the qualified business income generated against income on their individual tax return. We provided guidance about Section 199A earlier in 2018, which you can review here. Additional information is included in the Tax Planning Guide. For a more thorough analysis of the effect of this provision on your individual situation, call your HRH advisor.
The TCJA also revised deductions for business Meals and Entertainment (M&E). For amounts paid or incurred after December 31, 2017, certain business-related entertainment expenses are no longer deductible. Read more about the changes to the M&E deduction here.