Tag Archives: TCJA

Tax reform expands availability of cash accounting

Under the Tax Cuts and Jobs Act (TCJA), many more businesses are now eligible to use the cash method of accounting for federal tax purposes. The cash method offers greater tax-planning flexibility, allowing some businesses to defer taxable income. Newly eligible businesses should determine whether the cash method would be advantageous and, if so, consider switching methods.

Recent Developments That May Affect Your Tax Situation

The following is a summary of important tax developments that have occurred in July, August, and September that may affect you, your family, your investments, and your livelihood. Please call Launch Consulting Inc at 512-666-0729 for more information about any of these developments and what steps you should implement to take advantage of favorable developments […]

Close-up on the new QBI deduction’s wage limit

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of […]

Choosing the best business entity structure post-TCJA

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, […]

Law Change Affects Moving, Mileage and Travel Expenses

Changes to the deduction for move-related vehicle expenses The passing of the Tax Cuts and Jobs Act  (“TCJA”) suspended the deduction for moving expenses for tax years beginning after Dec. 31, 2017, through Jan. 1, 2026. Previously, taxpayers were allowed to deduct the costs incurred for certain work related moves, given the requirements were met. […]

Be Weary of State SALT Deduction Workarounds

With the pass of the Tax Cuts and Jobs Act (TCJA), a new limit has been placed on the deduction for SALT, State And Local Taxes. These limits severely impact residents of states that derive the majority of their revenue through state income taxes and high property taxes. Several states have or are in the […]