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Tax Planning Under the Tax Cuts & Jobs Act Legislation
With the congressional passage of the Tax Cuts & Jobs Act effective on January 1, 2018 there are many changes to both individual and business tax laws.  The overall effect on individual and business income taxes can be significant and are worthy of considerable consideration as we face this new tax legislation.   While one can easily access the full IRS Implementation (for individuals and business) of the new law here, we have attempted to provide a summary of the more common, yet significant changes with the RECAP video to the left and with Individual and Business excerpts of the law below.
INDIVIDUAL TAX IMPLICATIONS RECAP
The significant implications to be considered are changes to: 1) individual tax rates, 2) elimination of personal exemptions, 3) increase in standard deductions, 4) limitation of the State and Local Tax Deduction. 5) an increase in cash contributions to public charities and certain private foundations, and 6) the elimination of the Miscellaneous Itemized Deductions subject to 2% of AGI.   One of the obvious impacts may be the increased utilization of the standard deduction vs. utilizing Schedule A, Itemized Deductions due to the Act's limitations on the itemized deductions and the overall increase in the standard deduction. 

                              CLICK HERE FOR FULL IRS BASICS OF TAX REFORM PDF.
KEY BUSINESS TAX PROVISIONS
There has been a lot of interest around the new Qualified Business Income (QBI) Deduction also know as Section 199A since it was included in the Tax Cuts & Jobs Act.  This new provision provides a deduction of up to 20% of qualified business income and is available for sole proprietorships, partnerships, and S Corporations.  The deduction, however, is subject to various rules and regulations.  There may be ways to fully benefit from this new tax legislation by developing income strategies to maximize your QBI deduction. 
Tax Preparation from the comfort and safety of your home or office!
Larry E Baker, EA
Baker Tax Services LLC
5900 Jasper Street, Timnath CO 80547
(970) 300-1551
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Enrolled Agent
An Enrolled Agent is an individual who has earned the privilege of representing taxpayers before the IRS by passing a three-part comprehensive IRS exam covering individual and business tax returns. Enrolled Agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to strong ethical standards and complete a minimum of 72 hours of continuing tax education courses every three years.

Enrolled Agents (EAs), like attorneys and Certified Public Accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before..