Posted by Evan Piccirillo
A new year has arrived. It’s time to swap out our desk calendars and lie to ourselves about how healthy and disciplined we are going to be over the next 12 months. Time to start fresh and get off on the right foot. Who cares if you had to call out sick the entire first week of the year to take care of your sniffling kids (true story)?
There are many significant changes that could impact you in 2018 and going forward. The only way you will be able to use those changes to your advantage is if you understand them and take appropriate action.
In honor of the New Year, we here at the REM Cycle have gathered together some things you should be considering over the first few months of 2018:
- Try to understand how the new federal tax law impacts you and/or your business and take action to best position yourself for 2018 and the future.
- If you are a sole proprietor or have pass-through income: talk to an advisor who understands the new 20% business income deduction about how you can maximize your benefit
- If you are an estimated taxpayer: don’t just pay the same amounts you paid for 2017. It is possible that your tax burden will be drastically different in 2018; consult your tax advisor
- Consider paying down your home equity line; you will no longer get an itemized deduction for the interest paid
- If you have net operating losses, you need to understand the limitation – you might be paying taxes in spite of them
- Leveraged business taxpayers with gross receipts in excess of $25M need to understand the interest expense deduction limitation and strongly consider different financing strategies
- If you are a New York employer or employee, review the new law for Paid Family Leave (PFL).
- Most employers must have an insurance policy for PFL
- Employers may have payroll withholding considerations
- Employees should know their rights to these new benefits
- Remember to get your 2017 tax information to your preparer as soon as reasonably possible. Your due date for partnership and S-corporation returns is 3/15/18 and for individual returns is 4/17/18, before extensions. Maybe you won’t have to go on extension this year!
It is cold, it is dark, but we have an opportunity to set ourselves up for a bright 2018 if we act now. Don’t hesitate to reach out to your tax preparer or advisor to talk about the above. You will be happy you did.