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How Will the Recently Passed Tax Laws Effect Your Veterinary Practice – An Introduction…

Although the Tax Policy Center estimates that the bottom 80% of individual taxpayers (those with income under $149,000) will only receive 35% of the benefit in 2018, this new law will definitely effect you and your practice.  Here are some of the key areas of the new law that will surely effect you, your veterinary practice, and your employees.

 

  • Cash basis tax reporting is now available for all practices
  • Changes in limit and qualifying property for first year equipment write-off (Section 179)
  • Enhanced “Bonus Depreciation” rules for new property
  • Enhanced benefits for “Qualified Improvement Property” i.e. interior improvements
  • Rate adjustments for individuals and C corporations
  • “Like Kind Exchanges” rules now limited to real property i.e. real estate
  • No deduction for entertainment, amusement or recreation
  • Limits on employee achievement awards
  • New “Pass Through” business deduction up to 20%
  • New law might require revisiting your type of tax entity
  • Maximize your written accountable expense reimbursement plan (You have one right?); the new law eliminates all employee business expenses on personal returns

 

The Tax Cuts and Jobs Act of 2017 is the most comprehensive tax change since 1986.  Like most legislation effecting businesses, in general there are both positive and negative effects.  Now more than ever, we recommend that you invest in your practice by seeking the planning necessary to maximize the opportunities while understanding and minimizing the pitfalls.

 

Stay tuned!  We will address many of these specific changes in upcoming blogs.

 

 

 

 

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