It’s official. The new tax law has been signed. And it just keeps coming!

More goodies:

• • Bonus depreciation is doubled from 50% to 100%…and includes used assets…and is retroactive to September 27, 2017. Sniff. Somebody stop meh! #costsegregation #commercialrealestate #taxlosswithpositivecashflow

• The Section 179 allowance is doubled from $500,000 to $1 million, and the phaseout threshold is increased from $2 million to $2.5 million.
• The corporate version of the AMT is repealed.
• The list of qualified higher education expenses for Section 529 plans is expanded to include tuition at an elementary or secondary public, private or religious school, for up to $10,000 per year. What? #misseditagain
• The caps are raised on depreciation deductions for “luxury” cars.
• A tax credit is available for businesses that offer paid financial leave to new parents. This one disappears in two years, so get busy kids.
• the “Pease limitation” on itemized deductions is suspended.

Goodbye old friend:

• The Section 199 deduction is repealed. Huh? This makes no sense.
• The deduction for business-related entertainment is repealed. #goingtohavetoworkonthisone
• Deductions for business interest expenses are capped at 30% of AGI. Meh. Only affects the really big boys.
• There is a new one-time repatriation tax of 15.5% for liquid assets and 8 % for illiquid assets on foreign earnings, along with a new system for international taxation in the works. Hmmm. Not sure where this is headed. Stay tuned.
• 1031 exchanges are limited to real estate transactions only. Better upgrade your private jets in 2017.
• Carried interests are considered short-term until held for 3 or more years.

My advise for business owners? Take the rest of the year off and buy yourself a new truck…over 6,000 pounds of course.

Don’t miss New Tax Law. What’s Hot. What’s Not.

Qualifications, rules and limits apply.

As with all deductions, consult your CPA to determine the qualifications, rules and limits that apply.

See also: New Tax Law. What’s Hot. What’s Not.

~Mitzi E. Sullivan, CPA

M.E. Sullivan is a cloud based professional services provider specializing in cloud accounting.