Tax Trends for 2019

February 22, 2019

2019 is off and running and so are many Los Angeles Tax Preparation services, but they are also gearing up for 2019 by reviewing current tax trends. This research ensures that your preparer stays on top of the regulatory changes, protecting you from paying too much. However, while it is a tax preparers job to stay in the loop, it doesn’t hurt for you to be in the know either.

Federal Tax Cuts and Jobs Act

The federal Tax Cuts and Jobs Act spurred a lot of debate of tax conformity, but in the end, most states accepted the changes with only a few sticking with older versions of the federal tax code. The TCJA was developed to further job creation by offering more tax cuts while expanding the tax bases of many states. A Los Angeles Accounting firm can help you understand the impact, if any, on your business.

Wayfair v. South Dakota

As all Los Angeles Tax Preparation services should know, there has been tremendous debate about taxing and e-commerce for many years. However, with the U.S. Supreme Court’s decision in the Wayfair v. South Dakota case, it appears that a decision has been made that will usher in sales tax changes across the country. The court’s decision allows for states to apply state sales tax to remote sellers regardless of their location.

Corporate Income Tax Reductions

Due to the growth of the pass-through sector, corporate income taxes are representing a smaller portion of state revenue. This change is due in large part to businesses moving away from C corporation entities and the continued growth of tax preferences. You can contact a Los Angeles Accounting firm to see if your company is affected by these changes.

While this is only a tiny glimpse into the current tax trends driving 2019, Los Angeles Tax Preparation services should be able to help you understand the current tax code and what to look out for in the coming year. Be sure to contact a local accounting firm to have all of your tax concerns addressed.

 

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