Tax reform legislation has left many organizations in the service industry wondering how they'll be impacted. Knowing the consequences of the new tax laws - which went into effect Dec. 31, 2017- will allow you to prepare for maximum tax savings.
One of the most significant changes with tax reform covers the treatment of business-related meals and entertainment. Certain expenses are no longer fully deductible.
Tax reform also impacts how much of a business credit an employer may claim if they offer paid family and medical leave to their employees. To qualify for this temporary credit - it expires in 2019 - an organization's paid leave program must adhere to specific requirements.
Other significant aspects of the tax reform legislation include how corporate taxes are treated, fringe benefits for parking and mass transit, the bonus depreciation for used property, and Section 179 expensing.
In this article, Plante Moran tax experts Dean Feenstra and Dipti Vaishnav discuss the top 10 considerations service industry businesses need to be aware of when interpreting the new tax reform laws. The sooner business leaders are aware of the tax reform implications, the sooner they can explore the benefits available to them.