Contact: Gary Sigman, CPA, M.Tax, PFS, AEP

The recent enactment of the Tax Cuts and Jobs Act (TCJA) brought many changes to how individuals and businesses are affected by our tax system.

Among the deductions affected was the deduction for meals and entertainment incurred in the course of operating a business. Prior to the enactment of the TCJA, which took effect for many provisions on January 1, the allowable deduction for meals and entertainment expenses was capped at 50% of the allowable amount of such costs that were incurred. Under the old law, no deduction was allowable unless the cost was either directly related to or associated with the conduct of business.

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The Indian Union Budget 2018 has been presented recently in the Indian Parliament. 

In the guide linked below, Ashok Maheshwary & Associates LLP presents the highlights of the tax proposals of the Indian Union Budget 2018 introduced by the Honourable Finance Minister. This is the last full budget by the current government before the elections. On the tax front, one of the biggest changes in the budget is the reintroduction of Long Term Capital Gains tax @ 10% on sale of listed Indian shares and mutual funds. India has also clearly stated that it would come down heavily on cryptocurrencies.

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Contact: Jay Laurila

The Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, makes several changes to existing tax laws that affect Regulated Investment Companies (RICs). The big headline items of TCJA include the reduction of the maximum corporate tax rate from 35% to 21%, the repeal of the corporate alternative minimum tax (AMT), and U.S. corporate taxation’s shift from a worldwide tax system to a territorial tax system. While these wholesale changes to the corporate tax system should not have a significant direct impact RICs, as they will continue to have a 100% deduction for dividends paid to shareholders, all of the mentioned changes will indirectly impact RICs due to their investment in the companies that stand to benefit. In addition, it’s just as important to note the many significant provisions that did not make their way into the new law.

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The tax bill that Donald Trump signed into law in late December represents the most substantive changes to the federal tax code in 30 years, but Congress passed up its chance to clarify matters for cryptocurrency investors, traders, issuers and miners. The community is left with a host of questions and ambiguities; but while the tax bill does not directly address cryptocurrencies such as bitcoin, ether and the tokens issued through ICOs, it does impact them indirectly.

Especially important are changes to six provisions in the tax code: like-kind exchanges, loss carrybacks, the corporate tax rate, the business interest deduction, miscellaneous personal deductions, and the treatment of pass-through businesses.

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Contact: Charles F. Schultz III

INDIVIDUAL TAXATION

The Act simplifies the Internal Revenue Code (the “Code”) for individuals by consolidating various exemptions and deductions into a larger Standard Deduction. The Act does not make changes with respect to the maximum rate for capital gains and qualified dividends. The Act lowers overall income tax rates but does not reduce the number of brackets. The Act does eliminate the individual mandate tax related to the Affordable Care Act.

Read more: An Overview of the “Tax Cuts and Jobs Act of 2017”