The tax cuts and jobs act was signed into law on December 22nd and marked a historic tax reform initiative. "The last time this happened was in 1986," said Alan Osmolowski, CPA and partner at BlumShapiro.
BOSTON (PRWEB) February 19, 2018
BlumShapiro, the largest regional business advisory firm based in New England, has released a summary of the top ten key points Massachusetts businesses and individuals should be aware of regarding the GOP Tax Reform Bill.
The tax cuts and jobs act was signed into law on December 22nd and marked a historic tax reform initiative. "The last time this happened was in 1986," said Alan Osmolowski, CPA and partner at BlumShapiro. There was a need for US tax reform; US tax rates were higher than the rest of the world. Here are the top ten key changes businesses and individuals should know:
- US corporate rates were lowered to 21% from 35%
- New deduction available to "S" corporations and partnerships, but not all businesses are eligible
- Massachusetts businesses should discuss the option of their entity choice, i.e. "S" versus "C" corporation with their tax adviser.
- New standard deduction of $24,000 for those married, filing jointly
- State and local tax deduction is limited to $10,000
- Child tax credit doubled from $1,000 to $2,000 per qualifying child. The phase out was formerly $110,000 but has now gone up to $400,000
- New tax law has lowered tax rates at most income levels
- Top tax rate has been reduced from 39.6% to 37% on income higher than $600,000
- The AMT is not eliminated and the threshold has gone up from $84,000 to $110,000
- The estate tax was not eliminated; the exemption doubled to $11.2 million; Massachusetts still taxes estates valued at $1 million or more.
Massachusetts business owners and individuals should meet with their tax adviser to get a comprehensive overview of the tax reform legislation, particularly on the how the changes affect them.
Osmolowski is a partner at BlumShapiro and he focuses on providing tax consulting and compliance services to growing dynamic companies in a broad range of sectors including technology, life sciences, real estate, manufacturing and clean energy. Alan also serves as the firm’s practice leader for its technology and life sciences industry group. With more than 26 years of experience, he assists clients in identifying, evaluating and implementing tax planning strategies that result in significant tax and cash flow savings. He works with other members of the BlumShapiro team to address client tax issues and implement innovative and sustainable tax savings strategies.
BlumShapiro is the largest regional business advisory firm based in New England, with offices in Connecticut, Massachusetts and Rhode Island. The firm, with over 500 professionals and staff, offers a diversity of services which includes auditing, accounting, tax and business advisory services. In addition, BlumShapiro provides a variety of specialized consulting services such as succession and estate planning, business technology services, employee benefit plan audits and litigation support and valuation. The firm serves a wide range of privately held companies, government and non-profit organizations and provides non-audit services for publicly traded companies.
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