Private Company Tax Planning Opportunities for 2018

The Tax Cuts and Jobs Act of 2017 and the recent taxpayer victory in the U.S. Tax Court’s Lender Management, LLC decision have created important planning opportunities for closely held and family-controlled entities in 2018. In particular, with respect to: (1) navigating the elimination of the various deductions and the expansion of “bonus” depreciation; (2) determining appropriate entity structures for new ventures, as well as considering whether existing S corporations should convert to a C corporation; and (3) bolstering the “trade or business” positions of closely-held investment management entities and family office structures.