United States: Enactment of tax reform what actions to consider now

Size: px
Start display at page:

Download "United States: Enactment of tax reform what actions to consider now"

Transcription

1 from Global Mobility United States: Enactment of tax reform what actions to consider now December 13, 2017 (updated December 27, 2017 to reflect final law) In brief The US Congress has made dramatic progress pursuing historic tax reform. A House and Senate conference committee resolved differences in the two versions of tax reform legislation and Congress passed a final bill (hereinafter the Bill) on December 20, The final Bill was signed and enacted into law when signed by President Trump on December 22, For a high-level summary of the final Bill provisions, please see the Global Mobility Insight released on December 27, 2017 (link). Actions to consider now Given the potentially very short window between enactment and the effective date of many provisions, companies with globally mobile workforces should consider what actions may be warranted now. Employers with tax reimbursement or equalization type policies for globally mobile workforces should consider immediately whether and how their policies would apply under tax reform. They should identify areas of possible inconsistency or unintended results, and consider what changes to such policies may be appropriate given the enactment of the new tax law. Policy revisions can require approval from various stakeholders who will consider cost, fairness to employees, and process impact. Employers also should confirm whether revisions for employees currently covered under a tax reimbursement policy may be implemented immediately based on the specific terms contained within the policy or plan. In addition to tax reimbursement policy modifications, consideration also should be given to other impactful actions that can be taken by employers as well as individuals. The cost and benefit of changes related to tax reform and planning opportunities will vary on a case-by-case basis, with cost/benefit recipients often depending on whether employees are held to a US or non-us hypothetical tax or no hypothetical tax at all. Legislation has virtually immediate effect The new law contains a lengthy list of changes. Many provisions represent a significant change from current law with virtually immediate effect. This Insight provides a practical guide of critical actions that employers with mobile workforces should consider based on the new final Bill.

2 In detail Next steps actions to consider now Businesses with global workforces should consider the following six steps: (1) Evaluate mobility tax reimbursement policies Employers that have adopted tax reimbursement policies (e.g., equalization or protection) should review how these tax law changes could impact their tax reimbursement liabilities and gross-up costs for mobile employee populations. Companies should immediately evaluate their tax reimbursement policies and consider any modifications, taking into account that many of the tax law changes generally are effective January 1, Analysis and consideration by various parties may be necessary, not only from a cost and process perspective but also legal. For example, does the policy allow revisions mid-assignment as deemed necessary by the company (e.g., due to changes in tax law), or will current assignees need to be grandfathered under current policy? What specific policy provisions may need revision? The current tax equalization policy may have assumed certain variables that no longer would be appropriate. Consider the following areas: Does the hypo tax policy reference what may soon become old law? For example, does it reference miscellaneous itemized deductions, personal exemptions, deductions for foreign real property taxes, and the moving expense income exclusion all of which will be repealed? Are there itemized or standard deduction assumptions? For example, if the policy states that itemized deductions are assumed to be 12 percent of taxable income, should this guideline be changed? Similarly, will standard deduction assumptions in policies be unnecessarily costly when new tax law provisions are implemented? How are state and local income or property taxes taken into account under the policy? Does it provide for a deduction for hypothetical state and local income taxes even if such taxes are no longer fully deductible under new law? How does the policy address various deductions? Would the loss of deductions for hypo tax purposes mean savings for the company? For example, employees may lose a portion of their deduction for mortgage interest for debt on a new home purchase in which a binding contract was entered into on December 26, In this situation, should employees be entitled to a deduction for purposes of hypothetical tax (if a deduction is only lost due to the timing of the purchase)? For moving expenses, does it make sense to offer lump-sum allowances since qualified moving expenses are no longer excluded and significant administrative expenses can be saved with a lumpsum arrangement? (2) Identify mobility-related processes and controls that may be impacted Various mobility-related processes should be reviewed now to identify any changes that may need to be implemented as of January 1, These processes include, for example: Payroll for example, the coding of qualified moving expenses as a taxable benefit. In addition, withholding tax rates on supplemental compensation will change as US individual tax rates change. Policy and practices need to be updated as bonus payments and stock awards are settled in early Revised hypo tax calculations to consider impact of new law in addition to normal annual updates for inflation-related adjustments (for example). Preparation of cost projection estimates and revision of cost accruals for budgeting and other purposes. Substantiation and documentation (e.g., moving expenses treated as incurred in 2018 no longer need to meet accountable plan requirements.) (3) Evaluate expected costs and savings, and consider appropriate actions The resulting costs and benefits from changes relating to tax reform will vary on a case-by-case basis. Are employees held to a US or non-us hypothetical tax or no hypothetical tax at all? US tax decreases applicable to a particular individual may benefit the employee for those held to a US hypothetical income tax but benefit the employer for those held to a non- US hypothetical tax and working in the United States. In addition, caution should be given to assumptions that certain demographics will determine whether an individual s US tax costs will 2 pwc

3 increase or decrease as a result of tax reform given the many nuances of the new law. Are there specific mobile populations in which costs may increase? Mobility professionals should identify specific populations that may be impacted by a particular change, and communicate expected impacts to relevant parties (e.g., employees/ partners not covered by tax reimbursement policies, business units responsible for covering costs under policies, and global mobility policy owners who may wish to alter benefits currently provided). For example, are there US citizens working overseas that are paying real property taxes for their foreign residence? If yes, their real property taxes will be no longer deductible as an itemized deduction. Another example may be mobile employees home-based in certain hurricanedamaged areas such as Houston, Texas who may be able to claim additional personal casualty losses in 2017 the final Bill allows taxpayers to avoid the 10% of adjusted gross income (AGI) threshold. These examples could result in additional tax costs for the mobility program. Business units and contract negotiators may need accurate estimates of the additional costs of these changes (and similar changes) if they tax equalize using a US hypo calculation. Similarly, certain individuals with socalled carried interest arrangements (i.e., a profits interest in a partnership, typically a private equity or hedge fund) may experience increased tax costs unless the new three-year holding period (increased from one-year) is met for underlying assets or the profits interest itself to achieve capital gains tax treatment. Individuals and companies that provide tax assistance related to this income may see increases to the extent gains from such arrangements are now taxed at ordinary rates. The interplay of income sourcing and foreign tax rules (including treaties) will be important to this analysis. (4) Consider specific tax planning opportunities Individuals and employers may wish to consider the following opportunities: Pay state and local taxes in 2017 if a benefit would arise This includes personal property and real estate property taxes (US and foreign) that otherwise are obligated to be settled in early 2018 but that relate to the 2017 tax year and may be payable in 2017 under state law and practices. For example, the state of New York is allowing prepayments of New York real property tax. State income tax payments otherwise paid in 2018 (e.g., 2017 fourth quarter estimates and extension payments, including those not paid as the fourth quarter due to safe harbor coverage), may also be paid in 2017 to potentially claim a larger deduction. Note that pre-payment of state income tax for a future taxable year beyond 2017, however, does not result in the benefit of avoiding the $10,000 dollar limitation under the final Bill such payments will be treated as paid in the year to which they relate. Careful consideration should be given to individuals who may be subject to the alternative minimum tax (AMT) it may not be beneficial for those taxpayers to accelerate payment of these taxes to 2017 (or for employers to fund such taxes in 2017). Foreign tax credits should also be examined. Defer certain income-related items into 2018 (such as payment of bonuses, exercise of stock options) This assumes that employees at issue will benefit from the rate reductions in tax reform legislation and will not be impacted by other potential provisions such as the inability to fully deduct state and local income taxes. A potential deferral of income should be weighed against the expected benefit of a deduction to the employer for paying such items in 2017, taking into account Section 162(m) limits and corporate rate changes effective for Individuals residing in higher taxed states may be better off accelerating income into 2017 given the effect of changes to the state and local tax deduction on their effective federal tax rate. This may be particularly true of long-term capital gains that will not see a rate decrease under the new law. Accelerate payments for deductions that may be repealed Companies and individuals may consider accelerating the payment of moving expenses, as these amounts may not be deductible or excludable from income in As a general rule, if an employer pays a mover to move employee s household goods and effects, the employee is considered to have received payment at the time the employer pays the mover (not the move date.) Employers should consider payments to movers and relocation vendors in 2017 so as to claim the income exclusion and deduction benefit before it is repealed. Careful consideration should also be given to companies that have established a payroll cutoff date for the timing of recording moving expenses as taxable income. The mortgage interest deduction will not be repealed but will be further 3 pwc

4 limited under the final Bill, applicable for acquisition indebtedness incurred after December 15, An opportunity no longer exists for the acceleration of mortgage interest on acquisition indebtedness to avoid the tighter limitation. However, taxpayers with home equity debt may consider interest payments prior to year-end. Change the timing of specific transactions If a nonresident alien is selling a US partnership interest, he or she may wish to consider selling such interest before the end of Income from such a sale generally will be treated as effectively connected income (ECI) subject to 10 percent withholding of the amount realized. Analysis of foreign law and interpretation under treaty should be considered to confirm whether foreign tax credits (or similar relief) will be allowed. This also may be an unusual instance where a US foreign tax credit may be permitted to a nonresident alien on Form 1040NR. A high-net worth individual planning to formally expatriate may benefit from delaying the expatriation to post The final Bill would increase the exemption amount for estate and gift tax purposes. As a result, the benefit of a gift and go approach would increase if performed in Individuals who are in the process of entering into divorce and separation agreements may want to consider accelerating this process before 2019, depending upon the payor or payee status. Alimony would not be deductible and alimony received not taxable if paid under (i) agreements entered after 2019, or (ii) an agreement entered into before that date that is modified after 2019 (if it contains language that this new provision would apply.) Note that if a mobile employee is selling his or her principal residence, the employee should no longer consider changing the timing of their contract or closing date before 2018 for purposes of maximizing the exclusion. The rule that provides an exclusion from capital gain of up to $250,000 (or $500,000 for joint filers) if they owned and used the house for two out of five years is not changed under the final Bill. (5) Understand the interplay with a corporate tax rate change One important point for mobility professionals to recognize when considering US tax reform is the impact of the expected reduction in the US corporate income tax rate. This reduction is important to mobility professionals because it: highlights the need for international employee assignment-related costs to be properly allocated (charged out) to foreign affiliates that benefited from the employee s services, and enhances the value of minimizing employee gross up costs where possible given the higher individual income tax rates under current law. (6) Create a communication plan A communication plan is strongly recommended for mobility programs due to historic tax reform. Employers will wish to consider communicating to employees or partners about possible actions to consider, revisions to equalization policies, and hypothetical tax updates, as well as providing answers to frequently asked questions. There also should be communication to the C-suite or to responsible business units, particularly for material cost impacts. Mobility programs should anticipate the various questions that may arise and prepare a frequently asked questions list that all team members can utilize to provide consistent answers. For example, it is likely that mobile employees will want to understand why their paycheck may have changed in an adverse way, or why their paycheck did not change (if they anticipated a tax cut.) In addition, if employees lose a particular deduction, they will likely inquire as to whether they or the company will bear the resulting tax costs. The takeaway Preparedness pursue a tailored approach Mobility professionals will need to assess their specific mobile populations, tax costs, and policies to gauge what actions are the most critical. No one size fits all. However, the enactment of tax reform can provide an opportunity to showcase mobility-related functions and the mobility program s ability to respond quickly and with agility to this historic event. Actions to help reduce mobility costs are always a priority. But the need to swiftly and concisely communicate with all affected stakeholders mobile employees as well as the C-suite will also be a critical task. The C-suite will want to continue to pursue their strategic agenda using mobile workforces without any disruption. Identifying and remedying those processes that could be impacted by these tax changes will also be important to accomplish in a quick timeframe so that the focus remains on strategic business goals. 4 pwc

5 Let s talk For a deeper discussion of how enactment of US tax reform might affect your mobile workforces, please contact your PwC Global Mobility Services engagement team or one of the following professionals: Global Mobility Services United States Peter Clarke, Global Leader +1 (646) peter.clarke@pwc.com Al Giardina +1 (203) alfred.giardina@pwc.com Derek Nash +1 (202) derek.m.nash@pwc.com Clarissa Cole +1 (213) clarissa.cole@pwc.com Stay current and connected. Our timely news insights, periodicals, thought leadership, and webcasts help you anticipate and adapt in today's evolving business environment. Subscribe or manage your subscriptions at: pwc.com/us/subscriptions SOLICITATION 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at 5 pwc

United States: Enactment of tax reform what actions to consider now

United States: Enactment of tax reform what actions to consider now www.gmsasia.pwc.com United States: Enactment of tax reform what actions to consider now December 2017 In brief The US Congress has made dramatic progress pursuing historic tax reform. A House and Senate

More information

United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform

United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform from Global Mobility United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform March 27, 2018 In brief The following is a high-level summary of some key individual

More information

Tax reform highlights for individuals

Tax reform highlights for individuals from Personal Financial Services Tax reform highlights for individuals December 22, 2017 In brief On December 20, Congress gave final approval to the House and Senate conference committee agreement on

More information

Malaysia: 2016 Budget announcement and its impact on employers and individuals

Malaysia: 2016 Budget announcement and its impact on employers and individuals from Global Mobility Malaysia: 2016 Budget announcement and its impact on employers and individuals December 10, 2015 In brief The recent 2016 Budget tabled by the Malaysian Government with the theme Prospering

More information

China: New individual income tax law solicitation of comments on implementation rules and itemized deductions

China: New individual income tax law solicitation of comments on implementation rules and itemized deductions from Global Mobility China: New individual income tax law solicitation of comments on implementation rules and itemized deductions October 30, 2018 In brief The PRC Ministry of Finance and State Administration

More information

United States: Multinational reorganizations can bring about a host of employee mobility issues - consider employment frameworks early

United States: Multinational reorganizations can bring about a host of employee mobility issues - consider employment frameworks early from Global Mobility United States: Multinational reorganizations can bring about a host of employee mobility issues - consider employment frameworks early October 16, 2014 In brief Many cross-border,

More information

Japan: 2016 Tax Reform Proposal and its impact on mobile individuals and their employers

Japan: 2016 Tax Reform Proposal and its impact on mobile individuals and their employers from Global Mobility Japan: 2016 Tax Reform Proposal and its impact on mobile individuals and their employers January 21, 2016 In brief The 2016 tax reform proposal, known as the Zeisei Kaisei Taiko (Tax

More information

Switzerland: SECO directive on intra-group staff leasing - how does it affect companies with mobile employees?

Switzerland: SECO directive on intra-group staff leasing - how does it affect companies with mobile employees? from Global Mobility Switzerland: SECO directive on intra-group staff leasing - how does it affect companies with mobile employees? November 13, 2017 In brief The State Secretariat for Economic Affairs

More information

Top Ten global mobility issues for Tax Directors to think about

Top Ten global mobility issues for Tax Directors to think about www.pwc.com/globalmobility Top Ten global mobility issues for Tax Directors to think about April 2018 #makingmobilityeasy Top Ten global mobility issues for Tax Directors to think about 2 Contents Introduction:

More information

IRS proposes updated qualified intermediary agreement

IRS proposes updated qualified intermediary agreement from Global Information & Reporting IRS proposes updated qualified intermediary agreement July 8, 2016 In brief The Internal Revenue Service (IRS) on July 1, 2016 issued Notice 2016-42 (Notice) setting

More information

United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform

United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform www.gmsasia.pwc.com United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform April 2018 In brief The following is a high-level summary of some key individual

More information

Understanding the potential impact of tax reform on 2018 net revenues

Understanding the potential impact of tax reform on 2018 net revenues from Power and Utilities Understanding the potential impact of tax reform on 2018 net revenues March 14, 2018 In brief The Tax Cut and Jobs Act (the Act), signed into law by President Trump on December

More information

Belgium launches pilot program on cooperative tax compliance

Belgium launches pilot program on cooperative tax compliance from Tax Controversy and Dispute Resolution Transfer Pricing Belgium launches pilot program on cooperative tax compliance October 26, 2018 In brief The Large Enterprises Division of the Belgian tax administration

More information

Belgian corporate tax reform takes effect

Belgian corporate tax reform takes effect from International Tax Services Belgian corporate tax reform takes effect February 1, 2018 In brief The Belgian Parliament on December 22, 2017, approved the major corporate tax reform announced in July.

More information

Tax Cuts and Jobs Act: Mobility and Rewards House and Senate proposals side-by-side comparison November 13, 2017

Tax Cuts and Jobs Act: Mobility and Rewards House and Senate proposals side-by-side comparison November 13, 2017 Tax Cuts and Jobs Act: Mobility and Rewards House and Senate proposals side-by-side comparison November 13, 2017 Overview On November 2, 2017, the House Ways and Means Committee released details of their

More information

Increased taxpayer rights for tax dispute resolution under new EU Directive

Increased taxpayer rights for tax dispute resolution under new EU Directive from Tax Controversy and Dispute Resolution Increased taxpayer rights for tax dispute resolution under new EU Directive November 2, 2017 In brief The European Union is taking an important step forward

More information

PRIVATE CLIENT SERVICES

PRIVATE CLIENT SERVICES FEBRUARY 2018 www.bdo.com AN ALERT FROM THE BDO PRIVATE CLIENT SERVICES PRACTICE PRIVATE CLIENT SERVICES SUBJECT TAX REFORM S IMPACT ON INDIVIDUAL TAXPAYERS SUMMARY On December 22, 2017, President Donald

More information

The Tax Cuts and Jobs Act Impact on Individual Taxpayers

The Tax Cuts and Jobs Act Impact on Individual Taxpayers The Tax Cuts and Jobs Act Impact on Individual Taxpayers Summary On Wednesday, December 20th, Congress passed the Tax Cuts and Jobs Act (the Act ). The Act reflects the final provisions agreed upon by

More information

Indian rules on Master File and Country-by-Country-Reporting requirements

Indian rules on Master File and Country-by-Country-Reporting requirements from Transfer Pricing Indian rules on Master File and Country-by-Country-Reporting requirements December 21, 2017 In brief Reiterating India s commitment to implement the OECD s BEPS Action Plan 13, the

More information

The Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act Advanced Planning The Tax Cuts and Jobs Act Congress has passed the Tax Cuts and Jobs Act, the most sweeping tax reform since 1986. In today s world, pursuing your life s goals is being challenged in new

More information

Tax Cuts and Jobs Act of 2017

Tax Cuts and Jobs Act of 2017 Tax Cuts and Jobs Act of 2017 Important Highlights for Individuals and Small Businesses On December 15, 2017, Congress released the 2017 Tax Cut and Jobs Act ( the Act ) that has now passed both the House

More information

2018 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS

2018 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS 2018 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS INTRODUCTION With year-end approaching, this is the time of year we normally suggest possible year-end tax strategies for our clients. However, from a

More information

U.S. Tax Legislation Individual and Passthroughs Provisions. Individual Provisions

U.S. Tax Legislation Individual and Passthroughs Provisions. Individual Provisions U.S. Tax Legislation Individual and Passthroughs Provisions On December 20, 2017, Congress enacted comprehensive tax legislation (the New Law ), and this memorandum highlights some of the important provisions

More information

Tax reform readiness: The FTC regulations Credit given (maybe) where credit is due

Tax reform readiness: The FTC regulations Credit given (maybe) where credit is due from International Tax Services Tax reform readiness: The FTC regulations Credit given (maybe) where credit is due December 17, 2018 In brief The 2017 tax reform act (the Act) amended several Code provisions

More information

DeLeon & Stang, CPAs and Advisors

DeLeon & Stang, CPAs and Advisors Dear Clients and Friends: This year-end tax planning letter is intended only to serve as a general guideline. Of course, your personal circumstances may require in-depth examination. We would be glad to

More information

Year-End Tax Planning Letter

Year-End Tax Planning Letter Year-End Tax Planning Letter 2014 The country s taxpayers are facing more uncertainty than usual as they approach the 2014 tax season. They may feel trapped in limbo while Congress is preoccupied with

More information

Italy s 2018 Finance Bill includes important provisions on the digital economy, cross-border taxation

Italy s 2018 Finance Bill includes important provisions on the digital economy, cross-border taxation from International Tax Services Italy s 2018 Finance Bill includes important provisions on the digital economy, cross-border taxation January 18, 2018 In brief Italian Law no. 205 (the 2018 Financial Bill,

More information

DMJ & Co., PLLC - Year-End Tax Planning Letter

DMJ & Co., PLLC - Year-End Tax Planning Letter 2016 DMJ & Co., PLLC - Year-End Tax Planning Letter Dear Clients and Friends: First of all, if we haven t thanked you recently for letting us work with your tax and accounting needs, then THANK YOU! Our

More information

Tax Cuts and Jobs Act Key Implications for Individuals

Tax Cuts and Jobs Act Key Implications for Individuals Tax Cuts and Jobs Act Key Implications for Individuals Overview The 2017 Tax Reform legislation, the most significant federal tax law reform in over 30 years, was passed by both the House of Representatives

More information

The Global Mobility. Top Ten issues for tax directors to think about. Contents

The Global Mobility. Top Ten issues for tax directors to think about. Contents www.pwc.ch The Global Mobility Top Ten issues for tax directors to think about Contents 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. Cross-border employment structures p2 Enterprise level tax risks p2 Frequent

More information

TAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact

TAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact TAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact One of President Trump s major campaign promises was that he would simplify the federal tax code to the point that we could file using a postcard.

More information

PwC s Law Firm Services

PwC s Law Firm Services PwC s Law Firm Services Proposal to require accrual method of accounting could yield challenges: Six questions to help identify next steps June 2014 In brief Executives from larger law firms may have some

More information

An Overview of the 2017 Tax Legislation: Impact to Individuals! Prepared by First Foundation Advisors December 2017!!!!!!!!!!

An Overview of the 2017 Tax Legislation: Impact to Individuals! Prepared by First Foundation Advisors December 2017!!!!!!!!!! An Overview of the 2017 Tax Legislation: Impact to Individuals Prepared by First Foundation Advisors December 2017 Summary of the Bill On Friday, December 15, the House and Senate Tax Cuts and Jobs Act

More information

INDIVIDUAL YEAR END NEWSLETTER DEC 2018

INDIVIDUAL YEAR END NEWSLETTER DEC 2018 INDIVIDUAL YEAR END NEWSLETTER DEC 2018 LUONGO & ASSOCIATES, PC (301) 952-9437 WWW.LUONGOCPA.COM Unlike recent years, in which the tax rules have been fairly stable, 2018 brings extensive changes not seen

More information

2017 Year-End Income Tax Planning for Individuals December 2017

2017 Year-End Income Tax Planning for Individuals December 2017 2017 Year-End Income Tax Planning for Individuals December 2017 9605 S. Kingston Ct., Suite 200 Englewood, CO 80112 T: 303 721 6131 www.richeymay.com Introduction With year-end approaching, this is the

More information

D e c e m b e r

D e c e m b e r P I E C E S O F T H E P U Z Z L E D e c e m b e r 2 0 1 7 2 0 1 7 T a x R e f o r m : I n d i v i d u a l T a x C h a n g e s i n t h e T a x C u t s a n d J o b s A c t On December 22, 2017, the Tax Cuts

More information

alternative minimum tax

alternative minimum tax alternative minimum tax The alternative minimum tax ( AMT ) was designed to prevent wealthy taxpayers from using tax loopholes to avoid paying taxes. Because the exemption from the AMT is not automatically

More information

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format 2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format UPDATED November 2, 2017 www.cordascocpa.com 2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS INTRODUCTION With year-end approaching, this

More information

Head of Household $0 - $9,525 $13,600 $9,525 - $38,700 $13,600 - $51,800 $38,700 - $82,500 $51,800 - $82,500 $82,500 - $157,500 $157,500

Head of Household $0 - $9,525 $13,600 $9,525 - $38,700 $13,600 - $51,800 $38,700 - $82,500 $51,800 - $82,500 $82,500 - $157,500 $157,500 TAX REFORM - IMPACT TO INDIVIDUALS Summary On Friday, December 22, 2017, the President signed the Tax Cuts and Jobs Act (the Act ). The Act provides the most comprehensive update to the tax code since

More information

Midyear Tax Planning Letter

Midyear Tax Planning Letter Midyear Tax Planning Letter 2015 Introduction Tax planning for 2015 is a venture in uncertainty. Last December, Congress passed legislation extending a number of expired tax provisions. Unfortunately,

More information

Year-End Tax Planning Letter

Year-End Tax Planning Letter 2013 Year-End Tax Planning Letter 54 North Country Road Miller Place, NY 11764 (877) 474-3747 or (631) 474-9400 www.ceschinipllc.com Introduction Tax planning is inherently complex, with the most powerful

More information

Tax Cuts and Jobs Act: Mobility and Rewards Comparison of current US tax reform proposals December 4, 2017

Tax Cuts and Jobs Act: Mobility and Rewards Comparison of current US tax reform proposals December 4, 2017 Tax Cuts and Jobs Act: Mobility and Rewards Comparison of current US tax reform proposals December 4, 2017 Overview The below summary highlights key provisions of current tax reform proposals that may

More information

Individual Tax Changes in the Tax Cuts and Jobs Act Ken Bagner, CPA, MST

Individual Tax Changes in the Tax Cuts and Jobs Act Ken Bagner, CPA, MST Individual Tax Changes in the Tax Cuts and Jobs Act Ken Bagner, CPA, MST Kenneth.Bagner@SobelCoLLC.com 973-994-9494 December 27, 2017 Agenda Today s presentation will provide a basic overview of some of

More information

SECTION 409A: A NIGHTMARE OF COMPLEXITY

SECTION 409A: A NIGHTMARE OF COMPLEXITY JULY 25, 2007 VOLUME 3, NUMBER 6 SECTION 409A: A NIGHTMARE OF COMPLEXITY In this newsletter, we will first provide a relatively brief, high level outline of the Section 409A rules, after which we will

More information

Tax Cuts & Jobs Act (TCJA)

Tax Cuts & Jobs Act (TCJA) Tax Cuts & Jobs Act (TCJA) Agenda Entity Types and Basis of Accounting TCJA Overview Q&A Learning Objectives: 1) Learn about entity types and basis of accounting for book and tax purposes 2) Develop a

More information

US Tax Information for Diplomatic Families at the British Embassy

US Tax Information for Diplomatic Families at the British Embassy US Tax Information for Diplomatic Families at the British Rick Ward LLC February 22, 2018 Disclosure This presentation has been prepared by LLC. The information in this presentation is current as of February

More information

Hong Kong SAR Government previews forthcoming BEPS legislation

Hong Kong SAR Government previews forthcoming BEPS legislation Hong Kong SAR Government previews forthcoming BEPS legislation August 11, 2017 In brief On 31 July 2017, the Hong Kong SAR Government (the Government) released its consultation report on measures to implement

More information

2017 Year-End Tax Planning for Businesses

2017 Year-End Tax Planning for Businesses 2017 Year-End Tax Planning for Businesses As 2017 draws to a close, there is still time to reduce your 2017 tax bill and plan ahead for 2018. This letter highlights several potential tax-saving opportunities

More information

2018 Year-End Tax Planning Tips

2018 Year-End Tax Planning Tips 2018 Year-End Tax Planning Tips It s Never Too Early to Start Planning As the end of another year approaches, it s time to start thinking about ideas which may help lower your tax bill. When discussing

More information

TAX REFORM SIGNED INTO LAW

TAX REFORM SIGNED INTO LAW TAX BULLETIN 2017 9 DECEMBER 22, 2017 TAX REFORM SIGNED INTO LAW OVERVIEW Without much fanfare but with typical political controversy, the House and Senate successfully reconciled their respective tax

More information

HOUSE TAX REFORM PROPOSAL INDIVIDUALS

HOUSE TAX REFORM PROPOSAL INDIVIDUALS The following chart sets forth some of the provisions affecting individuals in the Tax Cuts and Jobs Act bill, as approved by the House Ways and Means Committee on November 9, 2017. This chart highlights

More information

TAX REFORM INDIVIDUALS

TAX REFORM INDIVIDUALS The following chart sets forth some of the provisions affecting individuals in H.R. 1, originally called the Tax Cuts and Jobs Act (the Act), as signed by President Donald Trump on December 22, 2017. This

More information

Client Letter: Year-End Tax Planning for 2018 (Individuals)

Client Letter: Year-End Tax Planning for 2018 (Individuals) Client Letter: Year-End Tax Planning for 2018 (Individuals) Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2018 tax bill. Unlike

More information

New Dutch transfer pricing decree implements OECD guidelines

New Dutch transfer pricing decree implements OECD guidelines from Transfer Pricing New Dutch transfer pricing decree implements OECD guidelines May 18, 2018 In brief On May 11, the Dutch Ministry of Finance published its new Transfer Pricing Decree (IFZ2018/6865).

More information

11100 NE 8th St, Suite 400 Bellevue, WA (425)

11100 NE 8th St, Suite 400 Bellevue, WA (425) the effects of tax ReFoRM 11100 NE 8th St, Suite 400 Bellevue, WA 98004 www.bpcpa.com (425) 454-7990 On December 22, Congress passed the Tax Cuts and Jobs Act, making tax reform a reality. Having taken

More information

Tax Cuts and Jobs Act of 2017

Tax Cuts and Jobs Act of 2017 On December 22, 2017, President Donald Trump signed into law H.R. 1, the Tax Cuts and Jobs Act of 2017 (TCJA). This new tax legislation, slightly over 500 pages in length, is the most significant revision

More information

Proposed revisions to US tax code would significantly impact inbound companies

Proposed revisions to US tax code would significantly impact inbound companies from International Tax Services Proposed revisions to US tax code would significantly impact inbound companies November 28, 2017 In brief On November 17, 2016 the House of Representatives passed the Tax

More information

The Tax Cuts and Jobs Act: What it means for you

The Tax Cuts and Jobs Act: What it means for you Tina A. Myers, CFP, CPA/PFS, MTax, AEP The Tax Cuts and Jobs Act was signed into law on December 22, 2017, and introduces a host of changes to the nation s tax regime. Many provisions are targeted to sunset,

More information

US Tax Information for Diplomatic Families at the Australian Embassy

US Tax Information for Diplomatic Families at the Australian Embassy US Tax Information for Diplomatic Families at the Australian Rick Ward LLC January 25, 2018 Disclosure This presentation has been prepared by LLC. The information in this presentation is current as of

More information

American Payroll Association

American Payroll Association American Payroll Association Government Relations Washington, DC June 2, 2015 Statement for the Record Submitted to the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law In

More information

Overview of the Tax Cuts and Jobs Act

Overview of the Tax Cuts and Jobs Act Overview of the Tax Cuts and Jobs Act Changes to the tax laws affecting individuals for this filing season. Basics for Individuals and Families As part of our client and community outreach we have prepared

More information

2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING

2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING Insights on... WEALTH PLANNING 2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING Proactive year-end planning Suzanne L. Shier, Wealth Planning Practice Executive and Chief Tax Strategist/Tax Counsel October

More information

Top Questions About the New Tax Law

Top Questions About the New Tax Law Top Questions About the New Tax Law The American workforce is stressed out and finances play a major role. Many workers say they re living paycheckto-paycheck, and the routine is stressing them out so

More information

Hong Kong: Introduction of Automatic Exchange of Information (AEOI) - what it will mean for employers and employees

Hong Kong: Introduction of Automatic Exchange of Information (AEOI) - what it will mean for employers and employees from Global Mobility Hong Kong: Introduction of Automatic Exchange of Information (AEOI) - what it will mean for employers and employees October 11, 2016 In brief The Legislative Council of Hong Kong passed

More information

Tax Season Insights with Ernst & Young. March 29, 2019

Tax Season Insights with Ernst & Young. March 29, 2019 Tax Season Insights with Ernst & Young March 29, 2019 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is

More information

Japan: Gift and inheritance tax reforms become law and are generally effective 1 April

Japan: Gift and inheritance tax reforms become law and are generally effective 1 April www.pwcias.com Japan: Gift and inheritance tax reforms become law and are generally effective 1 April May 2017 In brief The 2017 Japan Tax Reform Proposals were passed in the Diet into law on March 27,

More information

Questions. Top 10 Things You Need to Know about Tax Reform

Questions. Top 10 Things You Need to Know about Tax Reform and present Top 10 Things You Need to Know about Tax Reform Conducted in Cooperation with Questions Type Questions into the Questions Pane of the Go to Webinar Panel Surgent assembled a team of tax experts

More information

ROBINSON, FARMER, COX ASSOCIATES

ROBINSON, FARMER, COX ASSOCIATES ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY December 2017 Client Bulletin TAX CUTS AND JOBS ACT Major Highlights On December 20, 2017, Congress

More information

US Tax Information for Diplomatic Families at the German Embassy

US Tax Information for Diplomatic Families at the German Embassy US Tax Information for Diplomatic Families at the German Rick Ward LLC February 26, 2018 Disclosure This presentation has been prepared for employees of the World Bank by LLC. The information in this presentation

More information

U.S. Senate & House of Representatives Tax Cuts and Jobs Act. Proposals Relevant to Charitable Donors. December 14, 2017

U.S. Senate & House of Representatives Tax Cuts and Jobs Act. Proposals Relevant to Charitable Donors. December 14, 2017 U.S. Senate & House of Representatives Tax Cuts and Jobs Act Proposals Relevant to Charitable Donors December 14, 2017 Overview These charts review the tax proposals most relevant to charitable donors

More information

Corporate and Business Provision House Bill (HR 1) Senate Bill Final Bill

Corporate and Business Provision House Bill (HR 1) Senate Bill Final Bill Selected provisions of the House and Senate tax reform bills as passed by both houses of Congress which resulted in the final bill in the far right column. Introduction: This summary contains what ZLQ

More information

2018 Year-End Tax Reminders

2018 Year-End Tax Reminders 2018 Year-End Tax Reminders Family Office Resources Income Tax Beginning in 2018, the standard deduction for single filers is $12,000 (up from $6,500 in 2017) and $24,000 for married taxpayers who file

More information

US Tax Information for Diplomatic Families at the Swiss Embassy

US Tax Information for Diplomatic Families at the Swiss Embassy US Tax Information for Diplomatic Families at the Swiss Rick Ward LLC October 18, 2018 Disclosure This presentation has been prepared by LLC. The information in this presentation is current as of October

More information

US Tax Information for Diplomatic Families at the Canadian Embassy

US Tax Information for Diplomatic Families at the Canadian Embassy US Tax Information for Diplomatic Families at the Canadian Rick Ward LLC January 16, 2018 Disclosure This presentation has been prepared by LLC. The information in this presentation is current as of January

More information

2018 TAX SEMINAR OPPORTUNITIES & IMPACTS. Tax Cuts and Jobs Acts Enacted December 22, Most changes go into effect January 1, 2018

2018 TAX SEMINAR OPPORTUNITIES & IMPACTS. Tax Cuts and Jobs Acts Enacted December 22, Most changes go into effect January 1, 2018 2018 TAX SEMINAR OPPORTUNITIES & IMPACTS Tax Cuts and Jobs Acts Enacted December 22, 2017 Most changes go into effect January 1, 2018 S e m i n a r s p o n s o re d b y A n n L a u f m a n o f A L A F

More information

TAX REFORM INDIVIDUALS

TAX REFORM INDIVIDUALS The following chart sets forth some of the provisions affecting individuals in the Tax Reform Act of 2017 (the Act). This chart highlights only some of the key issues and is not intended to address all

More information

2017 YEAR-END. tax planning INDIVIDUALS. guide for

2017 YEAR-END. tax planning INDIVIDUALS. guide for 2017 YEAR-END tax planning INDIVIDUALS guide for year in review 2017 is unlike any previous tax year. Major congressional tax reform proposals that generally would go into effect in 2018 if signed into

More information

THE TIME IS NOW: TAX AND WEALTH PLANNING 2018

THE TIME IS NOW: TAX AND WEALTH PLANNING 2018 THE TIME IS NOW: TAX AND WEALTH PLANNING 2018 On December 22, 2017, the President signed the tax bill known informally as the Tax Cuts and Jobs Act (H.R. 1) (the Act ) into law. Now the work of unpacking

More information

In This Issue YEAR-END TAX PLANNING & NEWSLETTER Your Accountants and Business Advisors. Tax Plan From the New President-elect

In This Issue YEAR-END TAX PLANNING & NEWSLETTER Your Accountants and Business Advisors. Tax Plan From the New President-elect YEAR-END TAX PLANNING & NEWSLETTER 2016 Your Accountants and Business Advisors HSA provides comprehensive tax compliance and consulting for businesses and individuals. Our team of highly experienced accountants

More information

November 6, Comprehensive Tax Reform Proposal Released HR1 Tax Cuts and Jobs Bill, November 2,

November 6, Comprehensive Tax Reform Proposal Released HR1 Tax Cuts and Jobs Bill, November 2, November 6, 2017 Comprehensive Tax Reform Proposal Released... 2 HR1 Tax Cuts and Jobs Bill, November 2, 2017... 2 2017 Loscalzo Institute, a Kaplan Company Current Federal Tax Developments 2 Comprehensive

More information

You may wish to carefully examine your records to determine if you may be missing any of these deductions.

You may wish to carefully examine your records to determine if you may be missing any of these deductions. 2018 tax planning and tax changes Re: Planning 2018: Tax Consequences for Self-Employed Individuals Dear Client: Owning your own business can be very rewarding, both personally and financially. Being the

More information

Israeli Supreme Court rules ESOP expenses should be included in cost-plus compensation

Israeli Supreme Court rules ESOP expenses should be included in cost-plus compensation from Transfer Pricing Israeli Supreme Court rules ESOP expenses should be included in cost-plus compensation June 19, 2018 In brief The Israeli Supreme Court has upheld two recent District Court decisions

More information

DISCUSSING THE TAX CUTS AND JOBS ACT THIS TAX SEASON

DISCUSSING THE TAX CUTS AND JOBS ACT THIS TAX SEASON DISCUSSING THE TAX CUTS AND JOBS ACT THIS TAX SEASON Duncan Gates, EA, CFP, ChFC, CLU, RICP Practice Management Consultant/1040 Analyst Specialist Over the last few months, tax reform has been perhaps

More information

Japan Gift & Inheritance Taxation Reforms affecting Expatriates on Assignment in Japan Relief and More Exposure

Japan Gift & Inheritance Taxation Reforms affecting Expatriates on Assignment in Japan Relief and More Exposure Japan Gift & Inheritance Taxation Reforms affecting Expatriates on Assignment in Japan Relief and More Exposure December 2016 In brief The Ruling Party s 2017 Japan Tax Reform Proposal (known in Japanese

More information

American Citizens Abroad. Side-By-Side Analysis: Current Law; Residency-Based Taxation INTRODUCTION

American Citizens Abroad. Side-By-Side Analysis: Current Law; Residency-Based Taxation INTRODUCTION American Citizens Abroad Side-By-Side Analysis: Current Law; Residency-Based Taxation 5 December 2016; 1 November 2017; 1 December 2017; 18 January 2018; 19 April 2018 INTRODUCTION This side-by-side analysis

More information

TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY

TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY Mariner Retirement Advisors INDIVIDUAL INCOME TAX CHANGES Individual Income Tax Rates Single - 10%, 15%, 25%, 28%, 33%, 35%, 39.6%. Top rate begins at income over

More information

THE OWNER OPERATOR S GUIDE TO. The Tax Cuts and Jobs Act of Prepared by

THE OWNER OPERATOR S GUIDE TO. The Tax Cuts and Jobs Act of Prepared by THE OWNER OPERATOR S GUIDE TO The Tax Cuts and Jobs Act of 2017 Prepared by Tip: Click on any of the chapters below to skip ahead to that section. TABLE OF CONTENTS Introduction...3 Pass Through Entities...3

More information

LAST CHANCE TO REDUCE 2018 INCOME TAXES

LAST CHANCE TO REDUCE 2018 INCOME TAXES LAST CHANCE TO REDUCE 2018 INCOME TAXES Presented by: James J. Holtzman, CFP Wealth Advisor and Shareholder with Legend Financial Advisors, Inc. JAMES J. HOLTZMAN, CFP James J. Holtzman, CFP, is a Wealth

More information

FALL 2018 PERSPECTIVES THE NEW TAX LAW: TOP QUESTIONS FROM OUR CLIENTS

FALL 2018 PERSPECTIVES THE NEW TAX LAW: TOP QUESTIONS FROM OUR CLIENTS FALL 2018 PERSPECTIVES THE NEW TAX LAW: TOP QUESTIONS FROM OUR CLIENTS ABBOT DOWNING PERSPECTIVES Fall 2018 In this issue: The New Tax Law: Top Questions From Our Clients 3 Only the Beginning 7 Contributors:

More information

SPECIAL REPORT. Tax Law Essentials. Brought to you by Mercer Advisors

SPECIAL REPORT. Tax Law Essentials. Brought to you by Mercer Advisors SPECIAL REPORT Tax Law Essentials Brought to you by Mercer Advisors Game-changing tax package The recently enacted Tax Cuts and Jobs Act (TCJA) is a sweeping, game-changing tax package. Here s a look at

More information

Brackets (seven) - Taxable Income Single Filers. Between $9,525 and $38,700. Between $2,550 and $9,150. Between $157,500 and $200,000

Brackets (seven) - Taxable Income Single Filers. Between $9,525 and $38,700. Between $2,550 and $9,150. Between $157,500 and $200,000 Individual Taxes (Which Would Expire After 2025) Brackets (seven) - Taxable Income Single Filers Up to $9,525 Between $9,525 and $38,700 Between $38,700 and $82,500 Between $200,000 and $500,000 Above

More information

TAX REFORM: WHAT THE LAW WILL BE IN 2018

TAX REFORM: WHAT THE LAW WILL BE IN 2018 TAX REFORM: WHAT THE LAW WILL BE IN 2018 This piece summarizes current law and what the law will be beginning in 2018 with a view toward what matters most to you. In a last minute amendment to the bill,

More information

2017 Year-End Tax Planning for Individuals and Businesses

2017 Year-End Tax Planning for Individuals and Businesses AN HBK TAX ADVISORY GROUP PUBLICATION 2017 Year-End Tax Planning for Individuals and Businesses Tax Advisory Group As 2017 winds down, business owners may still benefit from several tax savings strategies.

More information

Tax reform possibilities

Tax reform possibilities www.pwc.com/us/utilities Tax reform possibilities NARUC Presentation March 2017 Tax reform possibilities Agenda Tax reform timeline Process and priorities: A look at Tax reform proposals Potential impacts

More information

Year-End Tax Planning Summary December 2018

Year-End Tax Planning Summary December 2018 Year-End Tax Planning Summary December 2018 Overview Tax planning at year-end always presents opportunities, especially in a year that involves significant new tax legislation. This memorandum outlines

More information

Year-End Tax Tips for Individuals

Year-End Tax Tips for Individuals Year-End Tax Tips for Individuals New tax legislation has brought greater certainty to year-end planning, but also created new challenges. There is still time to set up an appointment for year-end planning.

More information

2018 Year-End Tax Planning

2018 Year-End Tax Planning 2018 Year-End Tax Planning October 2018 1101 Wootton Parkway Suite 400 Rockville, Maryland 20852 Phone: 301.924.2160 Fax: 202.204.6322 2 Year-End Tax Planning - Overview As year end approaches, it's a

More information

Tax Cuts and Jobs Act: Impact on Individuals

Tax Cuts and Jobs Act: Impact on Individuals Community Wealth Advisors 3035 Leonardtown Road Waldorf, MD 20601 301 861 5384 wealth@communitywealthadvisors.com www.communitywealthadvisors.com Tax Cuts and Jobs Act: Impact on Individuals On December

More information

Tax Reform 2017: Frequently Asked Questions

Tax Reform 2017: Frequently Asked Questions J.P. MORGAN PRIVATE BANK WASHINGTON WATCH Tax Reform 2017: Frequently Asked Questions November 22, 2017 The House passed a tax reform bill on November 16, and the Senate is expected to debate and vote

More information

Tax Reform: What Dealers Need to Know

Tax Reform: What Dealers Need to Know Tax Reform: What Dealers Need to Know 1 Disclosure To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication is not intended or written

More information