On December 20, 2017, the final version of the GOP tax reform bill (the “Act”) was approved by both houses of Congress and sent to the President for signature. The provisions of the new legislation will generally become effective for tax years beginning after December 31, 2017. Many of the provisions of the Act applicable to individuals will sunset after 2025 unless extended by Congress.
All partnerships, including LLCs treated as partnerships for income tax purposes, should amend their partnership and operating agreements to designate a “partnership representative” and potentially provide for certain elections under new partnership audit rules coming into effect in 2018.
President Trump has proposed a number of tax reforms that would significantly change the taxation of both personal and business income. In particular, the proposals would broaden the income base and create significant nominal rate reductions on the income of businesses and high-income individuals.
Some individuals may want to utilize a corporation to earn a profit. Others may want to utilize a corporation to benefit society. And still others may want to utilize a corporation to do a little bit of both. For individuals seeking financial gain, there is the for-profit corporation.
The recent agreement to avert the "fiscal cliff," known as the American Taxpayer Relief Act of 2012 (the "Act"), makes a number of changes — including extending certain Bush-era tax provisions, — for taxpayers under certain thresholds.
For the balance of 2012, there are unique estate planning opportunities that we may not see again. This year, every individual may pass $5.12 million free of federal gift and estate tax to children, grandchildren, more remote descendants or other family members.