Oct. 10, 2018

This paid piece is sponsored by Eide Bailly LLP.

By Jim Jarding Jr., CPA and tax partner, Eide Bailly LLP

As we begin the final quarter of the year, business owners are finding out how tax reform, the Tax Cuts and Jobs Act, is playing out in the real world.

Education and a good talk with your CPA are the keys for business owners to minimize their tax obligations and maximize tax savings related to these sweeping changes. Business owners are invited to attend a series of tax-reform seminars that are aimed at making sense of this extensive reform of the U.S. tax code. The complimentary seminars in Sioux Falls, which take place over the next month and a half, will take an in-depth look at the major items affecting businesses.

We feel it is important to educate our clients and others to help them sort out and prepare for this very complex piece of legislation. Preparation is the key to effectively minimizing income taxes.

Eide Bailly’s tax professionals have been and continue to field a host of questions from clients. The seminars will address many of these frequently asked questions and offer opportunities to inquire about additional aspects of the tax law.

• What are the most significant changes for my business?
• What can I do now to save money?
• What deductions are available?
• What am I not considering that I should be?

By sharing our knowledge and being a resource of information about these significant changes, we help businesses be more successful and, likewise, strengthen our local economy.

Learn more about how the new tax law directly affects you and your business. The seminar series will be held at the Hilton Garden Inn Downtown and begin with registration and light breakfast from 7:45 to 8:15 a.m., followed by an hourlong presentation. The following topics will be covered:

Oct. 16: Tax Reform — Implications and Benefits for Businesses

How can businesses benefit from enhanced rules relating to depreciation and accounting methods? This session will address new rules related to like-kind exchanges, business meals and entertainment, as well as the new interest-limitation rules.

Register Now

Oct. 30: Tax Reform — Understanding the Net Operating Loss, Excess Business Loss and Impact on Entity Selection

The tax reform act has overhauled how business losses are utilized in both taxed and pass-through businesses. In this session, we will examine these changes and discuss their impact on entity selection.

Register Now

Nov. 20: Tax Reform and Section 199A: Understanding the 20 Percent Pass-Through Deduction

The new Code Section 199A creates a 20 percent deduction on qualified business income. This session will address the mechanics of the deduction, including the types of income that qualify, the income, wage base and capital base limitation, as well as strategies to optimize the use of this deduction.

Register Now

What next?

This major piece of legislation likely will take years for all the details to get ironed out. What should you do in the meantime? Talk to your CPA.

• Tax planning is more important than ever before for small businesses given the new 20 percent pass-through deduction. What strategies might you consider to maximize the benefits — and there are some — of the new tax code?
• Do you qualify for the new 20 percent business income or bonus depreciation deductions? Is there anything you can do or change to take advantage of the savings?
• Does it make sense to purchase equipment? Purchasing versus leasing is a consideration with the new depreciation rules.
• Think about your estate. It pays to look for ways to pass on your estate while you are still alive. Make use of the increased gift tax exclusion that allows you to gift $15,000 per year, per person without triggering any taxes.

The overall idea of the sweeping changes is intended to help organizations of all sizes grow, invest and create jobs.  Its impact, however, depends on who you are talking to. It varies depending on the size, structure and industry of your business.

A small investment of time and a greater understanding of this legislation could help business owners make more knowledgeable decisions. Join Eide Bailly for the informational sessions. Registration is required.

For questions, contact Jessica Armstrong at [email protected] or 605-977-2742.