Business Highlights of the 2017 Tax Cuts and Jobs Act

December 22, 2017 | By Obermayer

The highly anticipated Tax Cuts and Jobs Act is expected to be signed into law in early 2018.  This Act when signed will be the largest tax reform since 1986 and as a result, can affect many aspects of your business.  Here are some of the most prominent business and real property related provisions from the Act:

Corporate and Other Business Tax Provisions

  • Reduction of the corporate tax rate from a top graduated rate of 35% to a flat rate of 21%
  • 20% deduction for pass-through income including income from certain service businesses
  • Additional limitation on business interest expense deduction
  • Increase in Section 179 expensing and temporary 100% cost recovery of qualifying business assets

Real Property and Public Finance Related Provisions

  • Like-kind exchanges survive for real property not held primarily for sale
  • Private activity bonds survive unmodified under the Act but advance refunding bonds are repealed
  • New market tax credits and the low-income housing credits survive but rehabilitation credits are trimmed
  • New tax incentives for investments in designated low-income community zones (Opportunity Zones)

**SAVE THE DATE**

Join us for a discussion of these tax changes and how they might impact your business on Thursday, January 18th from 5-7 PM to attend a briefing and cocktail reception at Obermayer’s Philadelphia office.  Registration information will be coming in early January.

This summary is published for informational purposes only. It does not dispense legal advice or create an attorney-client relationship with those who read it. Readers should obtain professional legal advice before taking any legal action. 

 

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