Tax reform’s effect on partnerships and LLCs

The Tax Cuts and Jobs Act made a number of changes that affect multi-member partnerships and LLCs.

Most of these changes will put a smile on your face, but a few may cause some frowns.

How will your business fare under the new law?

We’ll tell you the good, the bad, and the ugly when you read my new article titled Tax Tips: TCJA Changes Affecting Partnerships and LLCs and Their Owners!

Six changes in the new law you need to know now:

1. The partnership technical-termination rule has been replaced. This is a permanent change and a good one! Get the full story when you read the full article.
2. Tax rates are lower. This applies to individual partners and LLC members. Get the full story when you read the full article.
3. There’s no change in the capital gains rates. Long-term capital gains and qualified dividends remain the same. Get the full story when you read the full article.
4. There’s a new 20% deduction for qualifying partnerships. The deduction generally equals 20% of qualified business income. Get the full story when you read the full article.
5. There are new limits on deducting business losses. There are two changes to the rules for deducting your business losses. I’m afraid that neither works in your favor. Get the full story when you read the full article.
6. New rules govern deducting partnership charitable contributions and foreign taxes. I’m sorry to say that these rules are good for Uncle Sam but not so good for you. Get the full story when you read the full article.