The Tax Cuts and Jobs Act slashes business income tax rates on certain types of business income.
- The 20% Qualified Business Income Tax Deduction slashes the top individual income tax rate on certain business income from 37% to 6%.
- The 37.5% Foreign-Derived Intangible Income (FDII) Deduction slashes the C corporation income tax rate arising from the sale of property and services to foreign buyers from 21 percent to 13.125%.
- The 50% Global Intangible Low Taxed Income (GILTI) Deduction slashes to 10.5% the C corporation tax rates on global income deemed earned from foreign subsidiaries from 21 percent to 10.50 percent. The United States foreign tax credit can reduce the actual United States tax on this income to zero.
I have written two white papers on these topics, which can be accessed through the following hyperlinks.
The Qualified Business Income Deduction: Interim Guidance describes the planning steps necessary to access the 20 percent QBI deduction.
“Tax-Favored” Foreign Income: Planning Pointers and Traps describes the planning steps necessary to access the FDII and GILTI deductions.
These white papers will be discussed in detail at our firm’s 7th Annual Tax Update, which will be presented at two locations:
- At Bentley University in Waltham on Wednesday, June 13, 2018; and
- At Massachusetts Continuing Legal Education (MCLE) in Boston on Thursday, June 21, 2018.
Each program is cosponsored by the New England Chapter of the American Academy of Attorney-CPAs and entitles CPA’s to four (4) hours of continuing professional education (CPE). Program brochures may be accessed by clicking on the brochures hyperlink. There is no charge, but you must register by clicking on the following hyperlinks, which bring you to the appropriate sign-up page. Or, you can register through our “Events” page at www.mrobinson.com.