ness interest to 30 percent of the
business’s adjusted taxable income
with carryforward of disallowed
amount (disallowance not appli-
cable to businesses with less than
$25 million in annual gross re-
ceipts); and
• Individual Income and Property
Taxes – Limitation on itemized
deductions for income and prop-
erty taxes to $10,000 ($5,000 for
married filing separately).
Responding to the Act
What, if anything, should law firms
do in response to these changes?
Law firms should immediately
take the following actions:
• Capital Expenditures – Reevalu-
ate mid- and long-term plans for
expansion or relocation to maxi-
mize benefit from expensing be-
fore January 1, 2023;
• Entertainment, Meals, and Trans-
portation – Begin tracking expen-
ditures for non-deductible enter-
tainment expenses and employee
meals and transportation fringe
benefit expenses, and evaluate
the need for expenditure and/or
reimbursement policy changes;
• Family and Medical Leave – Con-
sider adopting or changing an ex-
isting employer-paid family and
medical leave plan to qualify for
the new credits; and
• Interest Expense – If the firm
projects $25 million or more in
gross receipts, calculate the net
business interest expense to see
if the 30 percent limit will apply
and, if so, consider refinancing or
changes to partner compensation
in order to avoid to limit.
Law firms and their owners should
also begin planning structural
changes pending the issuance of
definitive guidance from the IRS
or technical corrections from Con-
gress on those provisions in the
14 TH ANNUAL
SPRINGPOSIUM
INTELLECTUAL PROPERTY CLE CONFERENCE
APRIL 27-28, 2018, AT LANIER ISLANDS
8 CLE including 1 Ethics, 1 Professionalism, 1 Trial Practice
Register online at www.AtlantaBar.org (complimentary registration for in-house counsel)
The 14th Annual Intellectual Property
SpringPosium ® is proudly presented
by:
20
April 2018
Intellectual Property Section