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.