Client Alerts

The Tax Cuts and Jobs Act of 2017

By: John C. Goheen, Frederick N. Widen and Adam R. Watowicz

About: Tax, Tax Advantaged Investments, Tax Controversy

Congress has passed and the President is expected to sign the Tax Cuts and Jobs Act of 2017, the Republican tax reform bill. This alert summarizes some of the key business, international, and individual provisions of the Act that may impact you and your business. Please contact your primary Ulmer relationship attorney or one of the lawyers listed in this alert to discuss these provisions.

BUSINESS PROVISIONS 

RATES, DEDUCTIONS, AND ACCOUNTING

Corporate Tax Rate

Corporate Alternative Minimum Tax

Temporary 100% Expensing for Certain Business Assets

Expansion of Code Section 179 Expensing

Limit on Business Interest Expense Deduction

Real Property Recovery Periods

Net Operating Loss Deduction

Section 1031 Like-Kind Exchanges of Real Property

Entertainment Expenses

Carried Interest

Denial of Deductibility of Fines and Penalties for Federal Income Tax Purposes

Denial of Deduction for Settlements Subject to Nondisclosure Agreements Paid in Connection with Sexual Harassment or Sexual Abuse

Substantial Built-in Loss for a Partnership

Cash Method of Accounting

PASS-THROUGH ENTITY DEDUCTION

EXECUTIVE COMPENSATION AND BENEFITS

Modification of Limitation on Excessive Employee Remuneration

Excise Tax on Excess Tax-Exempt Organization Executive Compensation

Qualified Equity Grants

Rollovers of Plan Loan Offsets

Nonqualified Deferred Compensation

BUSINESS TAX CREDITS

Historic Tax Credit

Low-Income Housing Credit

New Markets Tax Credit

Research and Development Credit

Employer Credit for Paid Family Medical Leave

INTERNATIONAL PROVISIONS

Move to territorial (rather than worldwide) system of corporate taxation.

Deemed repatriation of untaxed foreign earnings. 

Minimum U.S. tax on foreign subsidiary intangible income.

Base erosion tax on payments from U.S. corporations to foreign affiliates.

INDIVIDUAL PROVISIONS

Tax rates

Standard Deduction

Personal Exemptions

Alternative Minimum Tax (AMT)

Limitation on Itemized Deductions

Mortgage Interest Deduction

State and Local Tax Deduction

Charitable Contributions

Education

Affordable Care Act Individual Mandate

Medical Expense Deduction

Alimony Payments Deduction

Moving Expense Deduction

Exclusion for Qualified Moving Expense Reimbursements

Expenses Attributable to the Trade or Business of Being an Employee

Enhancement of the Child Tax Credit

Estate and Gift Taxes

Generation-Skipping Tax

Recharacterization of Certain IRA and Roth IRA Contributions