Tax Cuts and Jobs Act Guidance

August 27, 2018

The IRS has issued new guidance that will affect the 2019 filing season. As the end of 2018 draws near, taxpayers and their advisors will want to consider those aspects of the Tax Cuts and Jobs Act (TCJA) that they need to address by year-end. Taxpayers should keep in mind that the new law will have fully taken effect by the end of 2018.

The guidance covers transition tax, the qualified business income (QBI) deduction, and 100% bonus depreciation. Included in the transition tax guidance is information about what the transition tax is; and what the proposed regulations cover, including general rules, adjustments to E&P and basis, Code Sec. 965(c) deductions, the foreign tax credit, anti-avoidance rules, elections, and the definition of an affiliated group.

The QBI deduction guidance section covers what constitutes a trade or business, specified service trade or business applications, the wages/capital limit, other rules, and effective dates.

Included in the 100% bonus depreciation guidance is direction about election to use a 50% rate, used property, the binding contract rule, self-constructed property, and long production property. Other guidance included in this alert covers additional definitions and notices. Click below to read the full alert.

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