The new Trump Tax Plan (Tax Cuts and Jobs Act) goes into effect for this tax year. There are three key take-aways that I wish every American taxpayer knew:
- Your “given” deductions are no longer certain. Don’t assume you will be able to take deductions on your personal return anymore, most of them have been eliminated.
- There is a new 20% deduction possible on income from pass-through entities which includes partnerships, S Corporations, Sole Proprietorship and real estate reported on Schedule E. But the rules are new and strange in order to qualify to take the deduction.
- There are two important changes for C Corporations – a 21% flat rate and PSC (professional service corporations) are now eligible for the same new rate.
From those three rules, we have 23 brand new tax strategies for using a C Corporations to pick up more deductions, qualify for the 20% income deduction and maximize C Corporations in a whole new way.
Some of the questions I’m asking my clients right now are:
What is your taxable income going to be?
Do you have a service business?
Will the wage limitation rules apply to you? (Obviously, I’ll figure that one out, but the you need to provide the information to me.)
If you haven’t covered this with your CPA yet, go to www.Taxmageddon2018.com and pick up your copy of “Taxmageddon 2018.” You can buy the Kindle version, so you get it right now, while there is still time to do something about it.
I covered these strategies in Wednesday’s Coaching class on December 19, 2018. It was the last coaching call of the year.
I know you’re busy with the holidays right now and it’s really tempting to think that your taxes are something you can worry about next year.
Can you? Sure. But you’ll pay more in taxes if you don’t plan now.