Upcoming Tax Season
Congress made very large changes to the tax code that will effect 2018 income tax returns filed in 2019. These are the largest changes to the tax code in 31 years. The majority of tax returns we prepare will take longer to prepare and will be larger and include more schedules with additional information the IRS requires to take advantage of the new tax deductions. Everyone who files a separate business income tax return (C corporation, S corporation, Partnership), has a sole proprietorship, has rental properties, has an estate or trust, or has a farm is going to find that their income taxes have more schedules and significantly more information that must be reported to the IRS in order to take advantage of the new 199A 20% business deduction.
We have invested a large amount of time becoming familiar with the new tax law and we feel it will benefit 90% of our clients, 7% of our clients will see no effect, and 3% of our clients will pay higher Federal income taxes under the new tax law. Our expected percentages listed above do not match national averages because we specialize in businesses and have a large number of clients who own businesses, rental properties, and farms that will be able to take advantage of the new 20% 199A deduction. Further, Indiana is not a high tax state and this means we have fewer clients that will be effected by the $10,000 limitation on deducting state taxes on your Federal income tax returns.
We will be mailing our client letters out at year end and we are also going to email them to our clients this year. Please remember we have have moved to our new and bigger location at 10351 Dawsons Creek Blvd, Suite H. Once your have gathered all of your tax paperwork and have carefully filled out our short three page tax planner please drop everything off to our office. Jennifer Randle is our newest employee and she will take all of your documents and get them to us.
Please drop everything off to our office as soon as you have gathered all of your tax documents. Since tax returns will take longer to prepare this year we need to get started on your income tax returns as soon as possible. We are hoping you manage to drop everything off either the first week of February or the second week of February.
Please give us a call at 260-407-5000 if you have any questions about the new tax law and how it will effect you.
Mike Sylvester, CPA/ABV, MBA