Digesting the Tax Cuts and Jobs Act – 6 months after swallowing it

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Insight by NITP, Inc

June 11, 2018 – Host Bob Leins welcomes David De Jong and Steve Widdes, tax and estate attorneys with Stein Sperling Bennett De Jong Driscoll PC, to discuss uncertainties and opportunities related to the Tax Cuts and Jobs Act.

The Uncertainties

• Is there any way around the $10,000 deduction limit on personal taxes?
• Will alimony be deductible for those divorced in 2019 and beyond where nuptial agreements or separation agreements were signed before 2019?
• What is the future of the doubled estate tax exemption and other tax savings scheduled to expire after 2025?
• What’s the difference between business meals that are 50% deductible and business entertainment that’s nondeductible?
• Is ownership of real estate a business for purpose of the 20 percent qualified business income deduction (QBID)?
• What businesses have as their principal asset the “reputation or skill” of their individuals and don’t qualify for the QBID?

The Planning Opportunities

• Employment contracts to counter the loss of employee business expenses
• Use of Section 529 plans for pre-college education
• Reduced likelihood of future death taxes
• Choice of entity to conduct a business – new and old considerations
• Expanded us of cash basis accounting for businesses
• Writing off of most capital expenditures

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