There is great news for certain construction company contractors in the tax reform package. The 2017 Tax Cuts and Jobs Act increases the gross receipts limit to qualify for the small construction contract exception to the percentage of completion method by $15 million.
Given the Tax Cuts and Jobs Act’s complex and far-reaching nature, how can someone endeavor to understand ways in which it may affect their particular industry? For the real estate and construction industry, the Act brings about changes in the realm of personal tax returns, as well as business tax items that require attention.
The IRS will be issuing regulations and guidance to clarify the treatment of state income taxes recharacterized by states as a charitable deduction to work around new state and local tax (SALT) limitations.
The IRS has announced that it will be ending its Offshore Voluntary Disclosure Program on Sept. 28, 2018. Individuals should take advantage of the OVDP to report foreign bank accounts that haven’t been reported previously.
Congress pushed through massive changes to the federal tax law, most of which are effective beginning in 2018. One of the most significant changes made was to the estate and gift tax law.
One of the major changes by The Tax Cuts and Jobs Act is deemed repatriation (also called the “transition tax”) which, for certain taxpayers, will affect their 2017 tax returns, and therefore require immediate attention.
With the change in the tax law that became effective January 1, 2018, many taxpayers will benefit from lower income tax rates beginning in 2018.
Recent federal reform changes have already had many effects on state income taxation. As states scramble to measure the impact on their bottom line, we can expect many states to begin making changes accordingly.
When the Tax Cuts and Jobs Act became law on December 22, 2017, most taxpayers were focused on the individual and business tax reform changes. However, international taxpayers may have overlooked the less televised international tax provisions included in this bill, which could have a significant impact on these taxpayers.
With the devastation left behind by recent hurricanes, Congress has passed the Disaster Tax Relief and Airport and Airway Extension Act of 2017, with hurricane relief as the main focus.