The Tax Cut and Jobs Act (TCJA)

From our friends at Tidwell Group:

The Tax Cut and Jobs Act (TCJA)

The reduction in corporates rates coupled with a broadening of the tax base is a major shift in tax policy. While it may take several months to sort through the implications of the mid-term elections and policy changes from Congress, there is no doubt this piece of legislation will have a significant impact on 2018 tax planning and beyond.

For the affordable housing industry, one of the more important changes brought about by the TCJA is the limitation on the amount of business interest that can be deducted by a taxpayer. Starting in 2018, businesses are only able to deduct business interest expense up to 30% of their taxable income. Fortunately, until 2022 there is a depreciation add back included in the calculation of the business interest limitation.
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