Tax Tapas For July

  • The new corporate tax rate is a flat 21% effective 1/1/2018
  • A corporate blended tax rate will be effective for fiscal year corporations
  • The TCJA permanently repealed the corporate alternative minimum tax for tax years effective beginning after 12/31/17
  • Any remaining AMT credit is allowed to offset regular tax liability
  • Meals and entertainment updates:
    • All business entertainment expenses are 100% nondeductible if incurred after 12/31/17. Entertainment means amusement or recreation
    • Business meals furnished at an entertainment venue (nightclub, cocktail lounge, sports arena) are 100% nondeductible
  • Fringe benefit updates:
    • Starting 1/1/18 all reimbursed moving expenses are taxable to employees and employees lose the miscellaneous deduction for those costs not being reimbursed
    • Employee achievement awards like gift cards, theater or sporting tickets, etc. are taxable to the employee
  • Depreciation:
    • Raises the deduction for to 100% for qualified property acquired and placed in service after 9/28/17
    • Expands the deduction to apply to purchases of used property
    • Increases to $1 million the amount a taxpayer may expense
    • Expands the definition of qualified property

Please be sure to consult your tax advisor as to how the TCJA effects you.