The Rea Report Summer 2017 | Page 6

New Presidential Administration The Impact of Proposed Policy Changes TAX REFORM: Banning the Banter Tax Strategy In An Era Of Uncertainty Since President Donald Trump took office earlier this year there has been a lot of buzz about his administration’s stance on a number of high profile issues. As a result, we’ve found ourselves on the receiving end of questions about potential policy changes and how businesses could be impacted in the months and years ahead. In some ways, answering questions about the future of tax reform and the Affordable Care Act is difficult because we, like you, are still unsure about many of the details. But it’s also easy because, even if a concrete plan were available, transitioning that plan into law will be a long, drawn- out process that requires much debate, discussion, alterations and time. The simple truth is that we don’t have any answers at this time – no one does. THE YEAR AHEAD We often say that summer is the best time to identify and imple- ment a tax planning strategy – and that holds true today. Just be- cause there is uncertainty in Washington doesn’t mean the same should be true for your business. There are still solid strategies you can put into action now – particularly because the likelihood of tax reform passing through Congress this year is slim. Not only are we already halfway through the year, Congress is still on track to take its annual August recess, which means nothing will likely move forward until September. And, even then, with the government’s fiscal year concluding on Sept. 30, it will probably be the end of the cal- endar year before anything tangible makes its way through the legislation. In fact, there have been years in which we’ve seen a lot of tax changes come through in December or January of the following year. However, with the sort of overhaul being discussed, I believe it’s unlikely that anything will be pushed through or made retroactive in 2017. That being said, there are still quite a few provisions business owners can take advantage of, such as 179 expensing limitations, bonus depreciation and the research and development credit. The Protect- ing Americans From Tax Hikes Act of 2015 (PATH Act), which was made retroactive to Jan. 1, 2015, made several key tax provisions permanent while extending others. And while tax reform may eventu- 6