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Making Real Estate Great Again
Making Real Estate Great Again
New Tax Planning Opportunities and Strategies That No Longer Work
SAN DIEGO (March 2, 2018) – The recently enacted Tax Cuts and Jobs Act just hit the reset button on business and personal income tax planning.
Phil Jelsma, a partner and chair of the tax practice team at Crosbie Gliner Schiffman Southard & Swanson LLC (CGS3), recently discussed the implications of the tax overhaul for real estate-related businesses as part of CGS3’s “Building Innovation Series.” Building Innovation Series events are open to clients and friends of the firm and regularly examines hot-button issues related to commercial real estate and the law.
Phil Jelsma is a partner and chair of the Entity Formation and Tax practice team at CGS3.
The presentation by Jelsma – a seasoned tax lawyer with a practice focused on limited liability company (LLC) and partnership business and tax planning – provided a general overview of the more relevant Trump Tax Plan’s primary provisions, which include a 40 percent tax cut to corporate tax rates, temporary tax cuts for individuals, and the new 20 percent deduction for pass through entities.
According to Jelsma, the new tax law has provisions that both benefit and hurt the real estate industry, but the new 20 percent deduction is especially helpful to real estate professionals seeking to pay less taxes. “Beginning this year, pass-through entities such as sole proprietorships, partnerships, limited liability companies and S corporations are eligible for this additional special 20 percent deduction on domestic qualified business income,” he said.
As a result of the new deduction and some other key provisions, CGS3 is encouraging its business clients to take advantage of new tax planning opportunities and familiarize themselves with long-held tax strategies that no longer work.
Ultimately, the new tax law has planners re-examining choice of entity and organizational structures – and many businesses who have isolated W-2 wages from operational income are re-thinking their set-ups.
About Crosbie Gliner Schiffman Southard & Swanson LLP (CGS3)
CGS3 is a premier, new generation commercial real estate law firm with a reputation for leading commercial real estate law practice in California and attracting top legal talent from both large firms and senior in-house positions.
With practice areas including land use, finance, acquisition/disposition, entity formation, tax, development, leasing, distressed assets and litigation/disputes, CGS3 handles transactions across all asset classes and of all sizes, scopes and complexities. CGS3 is located at 12750 High Bluff Drive, Suite 250, San Diego, California 92130 and 10940 Wilshire Blvd., Suite 2200, Los Angeles, California 90024.
For more information, visit www.cgs3.com.
Media contact: Sydnie Moore (619) 823-8448
moore2com@gmail.com