We all have seen the Tax Reform Bill blueprint go through some significant changes over the past year. “It has been a rollercoaster of a ride since the President of the United States took office,” said Julio Gonzalez, CEO of Engineered Tax Services. When the first Tax Reform blueprint was released, I remember thinking there could be some significant unintended consequences for small business owners.
We were thrilled that the final tax bill repealed the corporate alternative minimum tax or AMT, which ultimately allows corporation to take advantage of continued tax deductions and credits. The elimination of corporate AMT means that the proposed 21% tax rate for businesses will encourage large companies to invest in their employees, expand out to new services and products, which will lead to hiring additional employees. Smaller businesses will reap benefits from the immediate expensing of equipment and the lower income tax rates which will lead to increased growth of their employees looking take home pay and thus leading to gross domestic economic growth (GDP).
The new tax bill allows real estate to be accelerated in terms of depreciation expensing through a cost segregation study. A cost segregation study allows a building to be broken down into components so that up to 40% of the building can be expensed upfront. It would be important to generate these studies prior to filing the 2017 tax return since the lower tax rates don’t become effective until the filing of 2018 tax returns. Engineered Tax Services provides expertise in these deductions and provides a free analysis to determine the wealth preservation that would be created by using this tax study.
Other tax opportunities to explore with ETS as year end tax planning approaches are tax studies that refund payroll and payroll taxes when a company makes a product with US employment. Some top opportunities are in Alternative Investments that allow for an immediate tax deduction such as easements and mineral tax studies. ETS can be helpful in reviewing these opportunities with you and your tax advisor to maximize wealth perseveration.
A B O U T E N G I N E E R E D T A X S E R V I C E S
Engineered Tax Services is the largest engineering and specialty tax firm in the U.S. with its headquarters in Palm Beach, Florida and offices nationally. ETS is led by CEO and nationally recognized tax reform expert, Julio Gonzalez. Find out more about ETS, Engineered Family Office specialty tax strategy and tax reform updates at www.engineeredtaxs.wpengine.com.
Media Contact | Melissa Ferguson | [email protected] | 8002366519
