The Tax Cuts and Jobs Act of 2017 (“TCJA”) was passed by Congress and signed by President Trump. The new law includes changes that will impact REIT investors and REIT corporations. Commentators believe the law changes will also have indirect impacts that may economically benefit REIT investors and REITs. The post below provides REIT investors with some of the details of the TCJA provisions applicable to corporations and their investors.
1.CLOUD BASED TECHNOLOGY
Could-based technology will continue to gain strong momentum heading into 2018. This technology gives businesses owners access to real time data anytime, anywhere. With access to information comes the idea that business owners are making informed business decisions. However, to make informed business decisions data needs to be understood and interpreted appropriately. The ability to interpret financial data is where accounting and finance experts can truly add value to a business. Outsourcing your accounting services provides for cost-effective expertise, the use of shared resources (such as accounting software that you do not have to host or manage), and an efficient accounting process with little overhead, or start-up time.
1. CORPORATE RATE / PASS-THROUGH DEDUCTION
What is in the bill:
Much has been made about the decline in the corporate income tax rate to a flat 21%, and there are also additional changes to the taxation of pass-through entities including partnerships and S-Corporations. The cuts to pass-through entities include a potential 20% deduction from the partner/shareholder’s allocated income, subject to limitations based on W-2 wages paid and the unadjusted basis of the property used in the production of the income.
1. PASS-THROUGH INCOME DEDUCTION
What is in the bill: It has been widely publicized that the bill provides a substantial drop in the tax rate imposed on corporations to 21%. In order to establish a more even playing field between corporations and pass-through entities, the bill proposes a deduction of a partner/shareholder’s allocation of pass-through income from a partnership or S-Corporation. The deduction is set at 20%, but subject to specific limitations.
Wondering what the new Tax Bill means for you?
Tune into Blood, Sweat & Tim at the link below for an informative podcast from Mark Blood and Tim Mason on the new Tax Bill. Tim being a small business owner himself, has great questions for Mark on how the Tax Bill will affect business and individuals heading into 2018. This is an interactive podcast with real-life examples that you don't want to miss!