Most people are aware that the recent tax reforms have implications for personal income tax liability. What most people don’t know is that new changes in the tax code can affect small business owners and many estate plans as well.
The new tax bill changes the rules for pass-through entities (LLCs, sole proprietorships, S Corporations, and partnerships), which make up approximately 90% of all businesses in the U.S. In the new bill, 20% of “qualified business income” is deductible. However, there are many new restrictions that small-business owners need to comply with. Our attorneys have assisted in the formation of hundreds of business entities, each tailored to our clients’ specific needs.
The new bill changes the tax rates for estates and generation-skipping exemptions, with these provisions scheduled to sunset in 2025. For families and individuals that already have an estate plan in place, now is a good time to schedule an appointment to review and update that plan. For those who don’t currently have an estate plan in place–e.g. a will, trust, or other transfer mechanism–the new provisions might make now an ideal time to consider creating one.
Contact a trusted attorney at the Lawrence, Kansas law firm, Petefish, Immel, Hird, Johnson, Leibold & Sloan, LLP, to guide you through the process of securing your future, with options for your small business or family estate plan needs.