In a recent article published in Accounting Today, Bennett Thrasher partner Jeff Call provides insight regarding how the Tax Cuts and Jobs Act has impacted the accounting industry. Call says, “We’re spending 85 percent of our time with clients exploring what they should be doing to take advantage of the new provisions that might be beneficial, or working around them to mitigate any negative aspects of the law.”
He says that the biggest issue is the taxation of qualified business income at 20 percent for pass-through entities and that the biggest limitation is the cap on state and local taxes. Call explains that business owners are profiting the most under this new act, “When you run the numbers, the ones that do the best are the pass-through business owners, if they qualify for the 20 percent deduction. Business executives are losing some deductions, but still are better off because of the reduction in tax rates.” For the full article, you may click here.