United States

What Tax Reform Means for You and Your Privately Held Company

The recent tax reform package represents the biggest change to the U.S. tax system since the 1980s. Discover how it may affect you and your privately held business.

 

After decades of talking about business tax reform, the Senate and House of Representatives finally agreed on a package. And, in late December, President Trump signed H.R. 1 into law. You might have spent your holidays reading all about it.

You may have read that it is the biggest revision to the U.S. tax code in decades, that it includes substantial changes to the taxation of individuals and businesses, and that it provides a net tax reduction of approximately $1.456 trillion over the 10-year “budget window.” It is, in a word, massive.

But—even with all your reading—you probably still might not know how the tax package will impact you and your privately held company. That is not surprising; H.R.1 is extremely complex. 

Read the recent issues of KPMG's Privately Speaking newsletter, where tax professionals from KPMG's Closely Held Business Owners Network provide information about the new bill and what owners and executives of privately held companies should know about.

Read more:

 

Success in Succession

Nobody likes to talk about succession planning. But the new tax reform bill has made the topic impossible to ignore. Are you rethinking your family business or private company succession plan? If you are not, you should be.

See below for some tips that can help guide you towards a smoother succession plan.

For more insight, read our recently published Privately Speaking newsletter on succession planning in the wake of tax reform here.

Tax Reform and Your Privately Held Company

For the most part, business owners and investors were optimistic about the passage of H.R.1. But it is also incredibly complex. Most privately held organizations may struggle to understand and properly respond. Below are some notable items that you might want to keep in mind regarding tax reform and its impacts on your privately held business.

To learn more, read our Privately Speaking newsletter on tax reform and its potential effects on privately held companies here.

 

Tax Reform Insights

597072083

Impact of Mandatory Repatriation on 2017 Tax Returns of S-Corporations and S-Shareholders

This article provides an overview of the mandatory repatriation provisions as they apply to S-corporations and their shareholders, as well as a brief review of certain time-sensitive elections.

 

Click here to read the article

book-stack

New Tax Law: Issues for Partnerships, S Corporations, and Their Owners

H.R. 1, originally known as the “Tax Cuts and Jobs Act,” was signed into law on December 22, 2017. The legislation significantly changes how individuals, businesses in all industries, multi-national enterprises, and others are taxed. KPMG has prepared a 167-page report that summarizes and makes observations about the many tax law changes in H.R. 1, including permanent reduction of the corporate tax rate to 21% and mandatory repatriation of previously deferred foreign income.

This report focuses on tax law changes impacting partnerships, S corporations, and their owners. Among other significant changes, H.R. 1 includes a new 20% business deduction that applies to certain partners and S corporation shareholders and new carried interest rules.

Click here to view the report

534568557

Webcast Replay: Tax Reform and Passthroughs

Listen to our Webcast replay on tax reform provisions relevant to businesses that are organized as partnerships and S Corporations. Topics discussed include the 20% deduction, interest expense limitations, capital expensing, carried interest, and other provisions.

 

View the Webcast here

white-house-tnf

Tax Reform: Highlights of the New Law

Released on March 5th, here is a high-level overview of the new tax law, a great resource for non-tax professionals.

 

Read the overview here

 

capitol-light-trails

Outlook on U.S. Tax Reform

Visit our page for ongoing insights from KPMG LLP (KPMG) on the outlook for U.S. tax reform.

 

on-the-2017-private-company-agenda-1080x378

KPMG's CHBO Network

Discover more about our Closely Held Businesses & Owners (CHBO) Network.

Follow KPMG's U.S. Tax Practice on Twitter

For more information, please contact:

bill-jackson

William Jackson

National Tax Leader, Private Markets Group; Leader, Closely Held Business Owners Network, KPMG LLP

E: wmjackson@kpmg.com

 

tracy-stone

Tracy Thomas Stone

Principal in Charge, Estates, Gifts, and Trusts Practice, Washington National Tax, KPMG LLP

E: ttstone@kpmg.com