Tax changes of Interest
Standard Deductions and Itemization
With the increase in the standard deduction and changes in the deductibility of certain other items (like real estate taxes, etc), some taxpayers may find it is no longer beneficial to itemize deductions on their personal tax return and that taking the standard deduction is most beneficial. Our initial assessment is that these changes will affect a relatively small percentage of our client base so please continue to prepare for tax season just as you have in the past.
Meals and Entertainment
One of the biggest changes affecting a lot of businesses is the deductibility of traditionally deductible expenses related to Meals and Entertainment. In general, deductions in this category that were 50% deductible in the past are 0% deductible; expenses that were 100% deductible in the past are 50% deductible. There are some exceptions but too much to articulate on this page. If you have material deductions in this category , we encourage you to discuss with us.
UPDATE: As of Nov 2018, this subject is still a moving target as congress has restored certain tax code related to business meals.
Pass-Through Entity Income Deductions
The changes in this category have been quite complex. Expect to see changes to forms and calculations around QBI (Qualified Business Income).