Businesses competing to attract elite employees have spent exorbitant sums to turn their offices into lifestyle hubs, complete with personal wellness classes, onsite meals, and more. Tax code change: §274(a) now prohibits or limits the deduction of a number of common fringe benefits.įor the better part of a decade, workplace perks have been munitions in the war for talent. Please consult with a qualified professional about any questions you have. Together, they highlight some of what’s new, what’s different, and what’s simply gone in the wake of H.R.1.Ībacus is mid-market's #1 solution for employee expense management, not for accounting advice. When I combed through the tax law to find what impact it will have on deductible employee expenses, I was left with more questions than answers. But under the radar, the law also cut or eliminated a number of deductions for fringe benefits, travel and entertainment (T&E), and employee expenses that businesses have taken for years. Parts of the Act have been well publicized, such as the 20% deduction for income from “pass-through” businesses and the $10,000 cap on state and local tax deductions. But for finance teams who can’t spend all their time poring over the changes, some might catch them by surprise.Ĭlick here to read the original post on. Tax professionals are taking advantage of the ambiguity, drawing up creative ideas to help their clients exploit loopholes and avoid penalties. As of this writing, the IRS has not yet issued guidance on key parts of the law. Weeks into the new year, many questions remain about the Act’s practical implementation. Though the package was years in the making in Congress, the actual bill was written hastily and passed just days before it was scheduled to take effect. When President Trump signed the Tax Cuts and Jobs Act in the waning days of 2017, accounting and finance professionals had to start scrambling to understand the largest change to the US tax code in a generation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |