February 28, 2019

Tax Reform: Do Final 199A Regulations Help or Hurt Healthcare Entities?

We have been monitoring and reporting on tax reform for several months, including one of the most complicated areas of the new law – Section 199A, commonly known as the 20% pass-through deduction.

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Topics: Tax Reform, Section 199A

January 29, 2019

Tax Reform: Are Your Parking Expenses Deductible?

A recent notice from the Internal Revenue Service has provided additional guidance regarding changes that the Tax Cuts and Jobs Act (TCJA) made to the tax treatment of parking fringe benefits. Previously, employers could generally deduct expenses related to “qualified transportation fringe benefits” that they provided to employees, including parking. The new law disallowed this deduction.

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Topics: Tax Reform

November 08, 2018

Tax Reform: Want to Grab Lunch?

Before passage of the Tax Cuts and Jobs Acts (TCJA), both meals and entertainment for clients and business associates were 50 percent deductible for tax purposes as long as business was discussed before, during or after the meal. Expenses for entertainment, amusement and recreation are no longer deductible starting in 2018. However, the wording in the TCJA was unclear on whether meals are now included in the overall definition of “entertainment.”

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Topics: Tax Reform

October 11, 2018

Tax Reform: Time To Change Entity Structure? Maybe Not

Since the passing of the Tax Cuts and Jobs Act (“TCJA”) in December, many healthcare providers started to wonder if there might be a tax advantage to changing their choice of entity. With the new 21 percent corporate flat tax, would C Corporations be a better option? Or would the benefit of the 20 percent pass-through deduction be more beneficial?

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Topics: Tax Reform

September 13, 2018

Tax Reform: Do You Want the Good News About Depreciation First?

The Tax Cuts and Jobs Act (TCJA) made several significant changes to depreciation rules when it became law in December 2017. In the “good news” department, two provisions in the law provided increased opportunities for businesses—including physician practices, hospitals and other medical practices that own or lease buildings—to expense the cost of depreciable assets sooner. On the “not-so-good news” side of things, several types of building improvements will now be depreciated over longer periods when their costs exceed the limits for immediate expensing. In addition to the longer recovery period, the new law and related guidance have created some uncertainty over what improvements may qualify for the same-year recovery provisions.

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Topics: Tax Reform, TCJA

August 15, 2018

TAX REFORM: IRS Limits Tax Strategies for Pass-Through Healthcare Entities

On August 8th, the IRS released proposed regulations addressing the Section 199A deduction, commonly known as the 20 percent pass-through deduction. The guidance clarified several aspects of Section 199A that are of particular interest to healthcare providers, including the definition of “specified service trades or businesses” (SSTBs) and restrictions on splitting up existing businesses. At first glance, it appears that these new rules will limit the ability of healthcare professionals to qualify for the deduction. (For a broader look at the general impact of the proposed regulations, see the HORNE article, “Tax Reform: Guidance For Pass-Throughs Is Here.”)

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Topics: Tax Reform, Section 199A

December 20, 2017

UPDATE: Finalized Bill Softens Blow to Hospitals and Other Tax-Exempt Organizations

Last week, we provided a high-level overview of components that would directly affect healthcare. With the finalized tax bill passed today, we have updated those components to include results of the final bill.

 

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Topics: Tax Reform

December 14, 2017

House and Senate Tax Bills Could Deliver a Huge Blow to Hospitals and Other Tax-Exempt Organizations

From lowering corporate taxes to health insurance mandates to the impact on the middle class, there are many headlines out there related to the recently passed House and Senate tax bills.

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Topics: Tax Planning, Tax Reform

November 03, 2017

House Tax Reform Details Unveiled

The House Ways and Means Committee just released the details of their tax reform bill and will start hearings next week. The Senate Finance Committee will roll out their companion legislation in the next couple weeks.

Many of the provisions are similar to those of the joint framework released in late September. However, now we have more specifics, albeit with many gaps still remaining.

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Topics: Tax, Tax Reform

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