The past year was an eventful one from a tax-planning perspective. The Tax Cuts and Jobs Act (TCJA) was signed into law at the end of 2017, initiating the biggest overhaul to the U.S. tax code in almost three decades. This legislation has had a major impact on year-end tax planning for architects and engineers.
The Supreme Court also handed down a decision in the Wayfair case, which drastically changed the landscape in which businesses need to collect sales tax from their customers.
Of note for architects and engineers, there is great news! These industries were specifically excluded from the definition of a Specified Service Trade or Business (see IRC Section 199A(d),(2),(A)), so they will be eligible for the qualified business income (QBI) deduction, regardless of income.
- Section 199A - Qualified Business Income Deduction
- Potential Benefits of Converting from S Corp to C Corp Status
- Deductions for Business Meals and Entertainment
- Retirement Plan Changes
- Sales Tax Impact of Wayfair Decision
- Partnership Audit Rules
- Qualified Opportunity Zone Investment Tax Benefits
- Depreciation Changes
- Changes to Itemized Deductions
- Limits for Charitable Contributions
- Estate Planning
Year-End Tax Planning for Architects and Engineers
We have identified a few areas to pay especially close attention to in the coming weeks when starting year-end tax planning for 2018 and beyond.
Sara Northcutt, CPA
Aldrich CPAs + Advisors
Sara joined the firm in 2005 and has more than a decade of experience working on a wide range of clients, including financial lending, private equity, real estate, and other closely held businesses. Sara specializes in multi-state tax compliance. Sara received her Bachelor of Arts degree from Vanguard University of Southern California and did her post-baccalaureate…
- Closely-held businesses
- Certified Public Accountant
- Strategic tax planning and compliance
Director, Architecture and Engineering Services
Diana Strassmaier, CPA, CCIFP®
Aldrich CPAs + Advisors LLP
Diana joined the firm in 2018 with almost two decades of experience serving members of various industries including construction, engineering and architecture, manufacturing and distribution, and government contracting. An expert on conducting overhead audits, Diana works closely with government contracting industry clients to offer clarity on how overhead rates work and help them maximize compensation.…
- Indirect cost rate (overhead) audits and consulting
- Financial audits, reviews and compilations
- Business and personal tax planning and preparation
- Certified QuickBooks ProAdvisor
- Management consulting
- Compensation analysis
- Sage Fixed Assets Certified Consultant