Opportunity Knocks With New Tax Plans
Dear Clients and Friends,
This week the House of Representatives and Senate unveiled their new tax proposals. As in all major tax overhauls, there are winners and losers. Under this tax overhaul, certain businesses are winners. We may see a major shift in many businesses from pass through entities (LLC’s and S-Corps) to C-Corporations. Forget double taxation – hello accumulating cash and earnings in C-Corporations with low 20% federal tax brackets. As with any new tax laws, there will be major changes until the Bill is final and passed. Some of these changes occur in 2017, but the bulk of the changes will happen in 2018 and beyond.
To plan properly, we certainly hope that any enacted law will give us the time before the end of the year to plan appropriately for taxes in 2017 and 2018. However, also understand that adequate time may not be the case so while the House and Senate are negotiating their differences, we will be working hard for our clients, finding a way to have options in case of passage either in 2017 or 2018.
Click here for a comparison between current tax law, the House of Representative and the Senate version of some of the law changes. We will follow this up with an in-depth analysis of the changes in law hopefully in the next few weeks.
The Fineman West Team