Pass-Through Entities | TaxConnections

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Almost Here – Free Webinar: Avoid These Four Costly Tax Planning Mistakes

This coming Thursday, on May 16th at Noon CDT, please join Tax Forum for a complimentary Webinar:

Avoiding Costly Mistakes: Four Essential Tax Concepts for the Business Attorney or CPA

Even smaller matters might have big traps and significant tax implications – leading to unexpected tax liabilities for your clients and potential malpractice claims for the professionals.

During this one-hour webinar, the Tax Forum team of Chuck Levun, Michael Cohen and Scott Miller will provide a top-level look at …

Converting an existing S corporation to an LLC on a tax-free basis to obtain “charging order” protection
Simple business structuring to circumvent the $10k deduction limitation for the portion of state and local income taxes attributable to partnership/LLC and S corporation income
How not to cause your client to be one of the estimated 500k+ LLCs that incorrectly thought it was going to be taxed as an S corporation but, because of certain language contained in its operating agreement, is not an S corporation
Personal goodwill and the C corporation business sale – identifying situations in which double tax can be avoided

Any one of these could make the difference between you being a hero or creating a significant problem for your clients.

Written by Michael Cohen | Posted in Free Tax Webinar • Partnerships • Pass-Through • Pass-Through Entities • Tax Forum

(NOTE READERS: THERE WAS SUCH A HIGH LEVEL OF INTEREST IN THE PASS-THROUGH POST WRITTEN BY MANASA NADIG YESTERDAY, WE WANT TO SHARE WITH READERS ANOTHER HIGHLY READ POST ON PASS-THROUGHS WRITTEN BY JOHN DUNDON)

Tax planning under the TCJA for pass through entities is a post for small business owners everywhere paying US income taxes.

Now that the Tax Cuts and Jobs Act (TCJA) is in full swing, many of you have been clamoring for tax planning strategies. This post addresses some essential aspects of the Act and suggest some strategic implications to be used for planning purposes.

One of the most significant changes coming out of the TCJA are the new tax rates:

The individual tax rate is reduced to a maximum 37%.
The tax rate for pass-through entities can be reduced by 20%.
The corporate tax rate is reduced from 35% to as low as 21%.

As a result of these new tax rates there is a growing debate over whether a business should be organized as a pass-through entity or a full blown ‘C’ corporation.

Written by John Dundon | Posted in Pass-Through Entities