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 manufacturing companies.
Two of the changes that are going to have significant impacts on manufacturers are the enhanced bonus depreciation & 179 expensing rules and the Supreme Court decision in the Wayfair case. Due to the very capital intensive nature of the manufacturing industry, the enhanced depreciation and 179 expensing rules are a welcome benefit for many in the industry. However, the Wayfair decision has many in the industry struggling to figure out the additional sales tax reporting requirements for states as they update their laws in reaction to the Supreme Court’s ruling.
These topics and many more are discussed in our Year-End Tax Planning Guide. As always, if you have questions about any of this please contact your Aldrich Manufacturing team.