Weekly Business Idea

December 22, 2017 – What Should You Do with the New Tax Law?

Posted on | December 22, 2017 | No Comments

Main Idea:

Are your ready for the new year?  What is the impact of the new tax law?  Is there anything you should do before year end?  Do you need to make changes in how you operate in 2018?

Expansion of the Idea:

Leave it to Congress to make everyone’s life crazier in December than they already are.  As you have heard they passed major tax legislation and President Trump signed it today.  Whether you like it or not, it will impact you.  We just don’t know yet whether the impact is significant and is it positive or negative.

As I have looked through the legislation, I have the following general observations:

  • Most individuals will have simpler tax filings
  • Most businesses will need to spend more time planning for taxes
  • Tax payments will generally be lower.
  • There are a number of “gotcha’s” that will hit certain companies, such as the elimination of entertainment expense deductibility.

There are a lot of pundits that are saying all sorts of things right now.  Most people don’t need to do anything.  The biggest things that you can do is to pay your fourth quarter state estimated tax payments and any miscellaneous itemized deductions before December 31.  Of course, if you are subject to alternative minimum tax, then these accelerated payments will have limited benefits.

The more important thing to consider is how your business is set up and what your goals are.  There are some significant changes in business taxation and that could involve changing how you are organized.  At a minimum, we should spend time discussing this.  Because of the major changes in business tax law, now is a good time to reconsider your business and personal situation.  I would encourage you to spend time over the holidays to define what your personal and business goals are.  Only by being clear on those goals will we be able to craft a plan that incorporates the new tax law to maximize your after tax business results.

We are in the process of assembling models on how the tax law will impact our clients.  By tax season we will have calculations set up to determine how the new tax law will impact you.  We are also planning on having workshops the first week of February that will discuss how the new tax law impacts the various methods of organization.  This will help you understand how C Corporations, S Corporations and LLC’s compare and which one is better for you.  For most clients, they have until March 15 to make changes in how they operate, if changes are appropriate.  The key is to be proactive.

Here are some specific steps to consider:

  1. Write down your personal goals for 2018
  2. Write down your business goals for 2018
  3. Email me if you are interested in attending a workshop on the impact of the new tax law or if you have specific questions on the new tax law.

With all of the changes going on and the divisiveness in the world, I really hope that we can individually and as a nation enjoy the spirit of Christmas.  I pray that God’s peace will be with you and your family during the holidays and in the coming years.


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    These weekly ideas are brought to you by FitzGerald & FitzGerald P.C. For more information about how to use these ideas with your small business contact Tim FitzGerald at trfitz@fitz-net.com.