Late last year, Congress passed the Tax Cuts and Jobs Act of 2017, enacting one of the most significant changes to the United States tax code in more than 30 years. The passage of the new bill has left many businesses and individuals wondering how the changes in the law will affect them and what they should do to prepare.
Amit Patel, CPA/PFS, CFP®, founder of A.P. Accounting and Tax Services, P.L. in Sanford, says clients will not see any impact this year when filing their 2017 tax returns. But he strongly suggests that clients start planning for their 2018 returns right now by consulting with their CPA to understand the complexities of the new tax law and its impact on their personal situation.
While there will be major changes, such as mortgage interest deductions and child tax credits, Amit advises families not to rush into making any permanent, financial decisions without first seeking professional advice. For instance, individuals may be concerned that they may lose some tax savings related to mortgage interest or property tax deductions, but they may not be aware that their standard deduction or child tax credits may have increased. So, it is important that people understand the impacts of the law before making any rash financial decisions that may adversely affect them. Fortunately, Amit is here to help.
Businesses will see significant opportunity for tax savings under the new law. Corporations will not only see lower tax rates, but many small businesses structured as LLCs, Partnerships, and S Corporations will be able to utilize lower pass-through rates on their business income. Additionally, many businesses may be able to utilize more aggressive depreciation methods on equipment they purchase. It will be equally important for many business owners to start the planning process early with Amit to maximize any potential tax benefits under the new legislation.
“We welcome and encourage new clients, whether businesses or individuals, to take advantage of our free initial consultation so that we can learn about their particular accounting and tax needs, and they can learn about us,” says Amit.
To schedule a free consultation, visit apflcpa.com.