While it might feel like you just finished your last filing, tax season is upon us again. It’s no one’s favorite task, but there’s no better time to plan and take advantage of the new tax laws. It’s not too late to make some smart moves on this year’s filing, nor to be proactive and find out what changes can benefit you when it comes time — too soon — to file again next year.
Why and how tax reform is fueling the economy
The 2017 Tax Cuts and Jobs Act was the first comprehensive makeover to the tax code in over 30 years. It eliminated $1.5 trillion in federal taxes, which lowered personal and business tax rates for millions of American individual taxpayers and small businesses while making corporate tax rates more competitive globally.
The law had several major aspects offering enormous savings for Americans and their businesses:
“The tax cut is not a one-off for 2018 and will continue to benefit both businesses and consumers in 2019. Following the 2003 tax cut, economic growth accelerated in both 2004 and 2005 as benefits of the tax cut legislation continued to accrue,” said Anthony Valeri, Investment Management Director of Wealth and Fiduciary Services at California Bank & Trust.
Extracting the greatest benefit when you file your taxes
Each business’s financial situation is unique. The first step is to sit down with your tax advisor to make sure that your goals are clear and to see how the reforms might benefit your business.
Here are a few factors you may want to discuss in particular:
Today, more than ever, businesses rely on trusted advisors to navigate ever-growing variables in a competitive environment. Be sure to ask your tax professional about gaining the maximum advantage for your business through these lower tax rates and new provisions. There are implications related to cashflow, capital expenditures, hiring, reinvestment, restructuring, succession planning, estate taxes, wealth transfer and more. Your tax advisor can help you assess the law’s impact and help you make smart choices with your future tax filings in mind.
"While the economy may slow in 2019, lower corporate and personal tax rates, business’s ability to expense more and 100% bonus depreciation are likely to provide key ongoing support,” Valeri added.
Help for your overall financial strategy is important, too. The business banking professionals at California Bank & Trust pride themselves on working shoulder-to-shoulder, need-by-need with each and every client to come up with solutions backed with guidance, experience, top-tier banking and business loan products and more. Learn more at www.calbanktrust.com/campaigns/in-your-corner/[cite::171::cite] [cite::172::cite]