NATDA Magazine May/Jun 2018 May/June 2018 - Page 27

carried back. In prior years, such losses could be carried back two years. This is no longer allowed. Therefore, if possible, recognize losses in 2017, not 2018 so they can be carried back. Does this mean Estate Tax Planning is no longer needed if my estate is less than $22 million? This would be true if both you and your spouse plan on going to the afterlife before the political winds blow in a different direction. The estate tax provisions can be changed by another Congress and administration. In addition, your estate value (that is not currently taxable) may increase in the future. One strategy that will emerge in the near term will be gifting estate value to heirs using up the increased lifetime exemptions while those higher exemptions exists. There is no one size fits all plan when dealing with estate tax and succession, so continue to engage your advisors on the subject despite the relaxed tax law. Did Obamacare go away? No, the 3.8% net investment tax on certain portfolio income is still in place. All the requirements related to health reform are still in place. The only thing that did change as part of the new law is the requirement for individual taxpayers to pay a penalty if they do not have adequate health insurance. Since the 2017 year has ended, are there still some things I can do in light of Tax Reform changes? There has been a lot of noise about various tax tricks that can be done for your 2017-year-end. Many have been generated from the tax “headlines” and not by actually reading the bill or making educated guesses on how the IRS will interpret the law. Some items are clear however: • Since tax rates are going to be lower in most instances (top rate going from 39.6% to 37% or less for S corp/partnership owners), tax deductions are worth more in 2017. If there were expenses you expected to incur in early 2018, accelerating them to 2017 will save tax. The obvious type of items are accrued expenses, prepaid items, etc. As noted, it will take some time for the dust to settle on this law. The IRS interpretations are just starting to come out and will continue for years. They will be followed up by tax court decisions. Over the next year, we will be reviewing your current structure and discussing transactions to maximize savings from the new laws. Please reach out to us with any questions or concerns you have regarding the new laws. We strongly suggest you contact us as you consider future business decisions so that we can assist you in understanding the impact these new laws will have. Dave Wiggins, CPA is a partner with CliftonLarsonAllen and is a member of the firm’s dealership team. He has extensive knowledge of the inner-workings of trailer dealership operations.  Dave has deep experience working with federal and state tax laws regarding trailer and other dealerships.  He can be reached at 314-925-4300 or david.wiggins@claconnect.com. About CliftonLarsonAllen CliftonLarsonAllen is a certified public accounting and consulting firm dedicated to providing services to privately held businesses and their owners. Structured to provide clients with highly specialized dealership insight, the firm delivers assurance, tax and advisory capabilities. For more information about CliftonLarsonAllen, visit  www.cliftonlarsonallen.com. • Consider accelerated depreciation to expense fixed asset purchases, service loaners and rental vehicles. • Write off obsolete parts inventories. • Adjust used vehicles down to market value. • Write off old uncollectible receivable. • Accruing bonuses to employees. Although there are savings from these items; we recommend only doing things that are economically prudent. If you were going to spend the money anyway, accelerating it into December makes sense. Making a spending decision solely based on the tax savings typically does not make sense. It is similar to buying something you do not need just because it was on sale. www.natda.org NATDA Magazine 27