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The Tax Cuts and Jobs Act (TCJA) is here to stay and its provisions change the landscape of the private equity world going forward. The decrease in corporate rates coupled with new net operating loss limitations, corporate alternative minimum tax repeal, and accelerated expenditures will directly impact how the value and price modeling of deals are calculated. When all of the TCJA provisions roll out, deal teams will have many additional tax attribute facets to consider when acquiring or exiting an investment.

Under prior law, the Internal Revenue Code provided that employers would be allowed deductions for operating privately owned aircraft attributable to business flights. Under the new law, though, expenses attributable to entertainment activities will now be 100 percent non-deductible, whereas in the past they were 50 percent deductible. Other changes were made and employers must alter how they categorize flights for the new rules.

The Tax Cuts and Jobs Act will dramatically change how income is taxed for business owners of pass-through entities, such as certain partnerships, limited liability companies, and S corporations. As of January 1, 2018, owners of pass-through entities may deduct up to 20 percent of their “qualified business income” from their taxable income each year. This creates huge incentives for business owners to organize their business as “pass-through” entities. This article breaks down how the pass-through deduction works and what types of businesses may benefit.

What does the passage of the Tax Cuts and Jobs Act mean for high-net-worth taxpayers? Comparing the Act to current law, we outline the provisions and focus on the proposals most relevant to high income and high-net-worth taxpayers and businesses.

At more than one thousand pages, the new tax reform package has plenty of both carrots and sticks for U.S. taxpayers. Both the short- and long-term effects of the new legislation on economic growth in the U.S. are uncertain at this point, but changes in the tax code will undoubtedly confer both benefits and penalties on certain segments of the U.S. economy. Until the tax accountants ferret out every new wrinkle, let’s examine the most likely impacts that the new law will have on the investment landscape in the coming years.

An IRS advisory published in late December could prevent individuals from deducting property tax prepayments in 2017. According to the advisory, taxpayers can deduct a property tax prepayment in 2017 depending on whether the tax was both assessed and paid before January 1, 2018. Prepayments of anticipated real property taxes that have not been assessed before January 1, 2018 are not deductible in 2017. Whether a tax has been assessed is a question of state or local law, and states vary widely in when and how they assess property tax.

Now that The Tax Cuts and Jobs Act (the Act) has been signed into law, you may be wondering what this means for you and your family. The Act is broad in scope and will change the tax rules for individuals and businesses in 2018 and beyond. When thinking about the impact of the Act on you, your family, and your business, it’s important to remember that every individual has their own set of circumstances, and is uniquely affected by tax reform.

Depending on where you live, your philosophy on fiscal policy and what your sources of income are, the Tax Cuts and Jobs Act could be viewed as a gift or a lump of coal.