The Tax Cuts and Jobs Act created huge changes to the way the tax code works. What worked in the past quite possibly won’t work the same in the future.
When there are big changes like that, there are also big questions like “What about this situation?” “What if this happens?” and the like.
What does the Act say about that type of detail? The answer is “Nothing.”
It’s left to the IRS to decipher how to actually put the Act into place. Since so many people are looking to the IRS for answers, they have issued a statement that outlines when they are going to be issuing statements. (Irony on purpose)
The IRS stated that they will soon be providing guidance on the following areas:
- Business credit for wages paid to qualifying employees during family an medical leave,
- Section 199A (20% income reduction),
- Small business accounting method changes,
- Unrelated business taxable income for separate businesses,
- Small business trusts, and
- Computation of estate and gift tax.
Until then, we have to move forward with the information we have. Don’t wait to put your own 2018 tax strategy in place!