We expect that the 2017 “Tax Cuts and Jobs Act” will be signed into law this week. Once the ink is dry on the new law, we will be working diligently to provide you analysis as quickly as possible.

If you haven’t already done so, please review our recent blog on proactive actions you can take before December 31, 2017.

We’ll start planning for 2018 and the future once we have done our full analysis of the new law. Questions we expect from our clients include:

Should I convert from an S Corporation to a C Corporation?

In general, we still think S Corporation status will provide an overall lower tax rate to its owners; however, it varies from business to business. If our analysis shows a benefit to revocation, the election to revoke S Corporation status for a calendar year business would be due on March 15, 2018.

Will I benefit from the flow-through entity deduction?

There are certain limitations on the benefit including the type of business, the wages paid by the business, business income, and other limitations. We will work with our clients to determine the maximum benefit under this provision.

How will my overall tax burden be affected by the new tax brackets and provisions?

Again, we will be able to answer this question more accurately once the final law is determined and we are able to analyze the ramifications.

 

Please be on the lookout for more guidance from Cray Kaiser as our analysis is completed.