United States

2018 year-end tax considerations for businesses

Legislative changes and other tax concerns that may affect planning

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This guide reflects the tax considerations and developments that we believe may create risk or opportunity for businesses in 2018 and beyond. It is not a holistic list of all tax issues that may affect your business, but it is designed to help you make informed decisions related to year-end tax planning.

The end of 2017 was filled with uncertainty as Congress worked on significant tax law changes, finalized and signed into law H.R. 1 (PL 115-97) on Dec. 22, 2017, commonly known as the Tax Cuts and Jobs Act (TCJA). As the end of 2018 approaches, taxpayers are still waiting on administrative guidance for some measures passed into law as part of the TCJA, while Congress considers additional changes under Tax Reform 2.0

Even though taxpayers anticipate administrative guidance or legislative changes to eliminate uncertainty, action may be required before year-end to fully take advantage of benefits or mitigate unintended consequences enacted as part of the TCJA.

The following is a list of major tax law changes enacted as part of the TCJA that impact 2018 and beyond:

  • A temporary reduction in personal income tax rates and limitation on state and local tax deductions
  • Reduced tax rates for repatriated foreign earnings
  • A move toward a territorial tax system for foreign corporate subsidiaries engaged in foreign business activities
  • Reduced corporate tax rates and repeal of the corporate alternative minimum tax
  • A qualified business income deduction for many owners of pass-through businesses
  • Limitations on business interest deductions
  • Changes favorable to capital cost recovery for full expensing for all depreciable assets, including qualifying used assets.

Additionally, in response to changes in federal tax law, 2018 has brought about significant changes at the state and local level as states move to conform or decouple from these changes.

We have compiled this guide  to help companies make informed decisions related to year-end tax planning. In a year with many changes, many introducing additional complexities, planning becomes all the more important.

Additional 2018 Year-End Resources

2018 state tax legislative changes

Understand the critical legislative updates and changes from 2018 affecting state and local tax planning and compliance.

Tax Planning Guides and Rate information

Our annual tax planning guide, current federal tax rates and other tax planning and compliance tools for business and individual use.

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