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Eide Bailly Tax Reform

Tax Reform makes it possible to lower effective income tax rates, providing an incentive for taxpayers to embrace the usual tenets of tax planning more than ever.

What to consider:

  • Defer income and accelerate deductions by identifying opportunities for o Bad debts

·   Bad debts

·   Installment sales

·       Certain prepaid expenses

·       Accrued bonuses

·       Cost segregation studies

·       Utilizing expiring credits and deductions (such as state income taxes where AMT is not an issue)

·       Pre-funding future years’ donations (i.e. donor advised funds)

·       Selling loss assets

·       Utilizing like-kind exchanges,

·       Maximizing retirement plan contributions

·       Making favorable changes to accounting methods.

  • For estate planning, generally avoid incurring gift taxes on transfers in light of the higher basic exclusion amount and possible repeal of the estate tax (consider GRATs and sales to defective grantor trusts and transfers).

  • Don’t forget about AMT, potential limitations and state tax conformity issues.

Business Impact

There are many business considerations as well

·       Corporate tax rate

·       Pass-through income

·       Limitations on net interest expense

·       Full expensing of business assets

·       Changes to net operating loss deductions

·       Limitation of like-kind exchanges

·       Limitation on deductibility of FDIC premiums

·       Corporate alternative minimum tax

·       Rules for recognition of income

·       Changes to business tax credit

·       Modified limit on excessive compensation

·       Modified deduction for meals and entertainment expenses.

An Informed Approach

If you’re interested in staying up to date with important tax news and legislative updates that may impact your business or individual situation please sign-up to receive our Tax Updates, register for an upcoming Tax Trends session, or view the many resources we have available on our website, blogs and industry specific newsletters. We will continue to add insights of relevance with actions items for businesses and individuals to consider as they plan for the future.{8AD449B4-F342-46B5-B9A9-473C907EAEF6}  

Scheduling a Meeting

If you’re looking for a one-on-one approach and review of your specific situation, please contact an Eide Bailly LLP advisor.

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