Rea's Annual Report Disruption: 2018 Annual Report | Page 19

state and local taxes
(SALT) and South Dakota v. Wayfair

Meet the SALT team (standing, from left) Deirdra Divittis, Luke Lucas, Sarah Sparks, Joe Clark and Scott Zielaskiewicz and (sitting, from left) Lamarcus Crowders, Kathy LaMonica and Joe Popp.

Our SALT team has made huge strides over the last year. Today, we have a team of dedicated state and local tax professionals who can help you with everything from conducting nexus studies to identifying and implementing sales tax automation software integration and everything in between. Following the South Dakota v. Wayfair decision, state tax departments have streamlined their discovery divisions and rules, so we proactively help clients address SALT issues before they become problems. We’re now offering client on-boarding services as well. This service provides clients with an initial high-level look at potential opportunities.

tax cuts and jobs act prompts an expansion of services

The Tax Cuts and Jobs Act has thrown many companies for a loop. So our tax team rallied together to develop a variety of services designed to help guide our clients through the changes.
• An accrual to cash study will help determine whether you could benefit from switching from accrual to cash accounting, which determines when to record revenue or expenses. Under the right circumstances, a change in your accounting method can result in thousands of dollars in deferrals. To determine if this approach makes sense for you, we’ll look at your year-end reports, receivables and payables at the beginning and end of the year and perform a conversion analysis to see if you would receive a significant tax deferral or if quarterly estimates currently need paid. If it is a good move, we handle the details and deliver a complete report.
• A C vs. S corp analysis can present a tax-saving option for clients who are curious about entity choice. This analysis takes into consideration your business’s profitability, current entity structure, profit spending and future plans.
• Owners of pass-through businesses can take up to a 20 percent deduction of their qualified business income. With the pass-through business deduction (199A) planning service, we find opportunities to manage thresholds for service businesses by looking at various opportunities to reduce income such as bonus depreciation, maximizing retirement plan deductions, cost segregation studies and gift/sell interests in entities.

DISRUPTION: REA & ASSOCIATES’ 2018 ANNUAL REPORT | NOV. 2017 – OCT. 2018