It seems there are often new tax proposals. In fact, a couple of prior articles this year examined other tax proposals, such as those from Senator Elizabeth Warren (D-MA) and Senator Bernie Sanders (I-VT). But, regardless of their merits, those proposals are not likely to go anywhere given they are opposed by most Republicans.
By Joe Bublé and Sidney Kess
The Tax Cuts and Jobs Act of 2017 (P.L. T115-97) is transformative legislation that dramatically changes the tax landscape for individuals and businesses for years to come. It has an impact on the income tax that attorneys will pay and it also affects the work that firms will be asked to do.
Three steps to take advantage of the 20% pass-through deduction in the “tax cuts and jobs act of 2017”
The new tax deduction for owners of pass-through entities in the Tax Cuts and Jobs Act of 2017 has brought increased focus on the issue whether a worker is an “employee” (W-2 recipient) or an “independent contractor” (1099 recipient). Given the choice, employers may prefer 1099 reporting to avoid payroll costs and withholding of social security, Medicare, unemployment and income taxes. Meanwhile, many wage earners would want to be paid as independent contractors, if their pay could be deemed “qualified business income,” entitling them to as much as a 20% deduction.
Below is the first of two articles about aspects of the Tax Cuts and Jobs Act of 2017. The first is an expert analysis of the Act in Questions and Answers on the Qualified Business Income Deduction by Sidney Kess that first appeared in the New York Law Journal. The second piece is shorter and focuses on the employee/independent contractor issue. Those of you who are particularly interested in the independent contractor issue will want to be sure to read the second article next week, then refer back to Kess’ tax analysis for the definitions of the terms used.
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.