MWA is now CLA

We are excited to share that we plan to join CLA (CliftonLarsonAllen LLP) on November 1, 2018. CLA is a national professional services firm that, like us, has developed an approach to business grown out of a passion for the businesses in our communities and a deep concern for the people who make them run.
As CLA, we can offer you even deeper knowledge and capabilities when you need it — while retaining the agility we have today.
All told, this transition should feel seamless. Take a look at CLAconnect.com to get a feel for CLA — creating opportunities for businesses, individuals, and communities through industry-focused wealth advisory, outsourcing, audit, tax, and consulting services.
If you have any questions or concerns, please do not hesitate to contact us at 972-881-1501. We look forward to continuing to serve you.
 
Blog Posts

2017 Tax Reform Changes

December 22, 2017

On Friday, December 22, 2017, President Trump signed the 2017 Tax Reform Bill which will have significant consequences for business owners and most individuals.  Nearly all of the changes will not go into effect until January 1, 2018 for the 2018 tax year, however, it is important to start planning now.  Here are a few highlights of the bill:

Individuals
 1. Tax brackets have changed with the top bracket at 37% instead of 39.6%
     • 10% (income up to $9,525 for individuals; up to $19,050 for married couples filing jointly)
     • 12% (over $9,525 to $38,700; over $19,050 to $77,400 for couples)
     • 22% (over $38,700 to $82,500; over $77,400 to $165,000 for couples)
     • 24% (over $82,500 to $157,500; over $165,000 to $315,000 for couples)
     • 32% (over $157,500 to $200,000; over $315,000 to $400,000 for couples)
     • 35% (over $200,000 to $500,000; over $400,000 to $600,000 for couples)
     • 37% (over $500,000; over $600,000 for couples)

2. Elimination of personal exemptions

3. Standard deductions almost doubled (12,000 for individuals and $24,000 for married couples)

4. Child tax credit – increased to $2,000

5. Itemized deductions are drastically altered/reduced including:
     • Mortgage Interest – limited to loans less than $750k
     • Home equity interest deduction - repealed
     • State and Local taxes – subject to $10,000 
     • Medical expense – threshold reduced to 7.5% for all taxpayers, down from 10%
     • Miscellaneous itemized deductions – repealed

6. Alternative Minimum Tax – exemption amounts increased

7. Eliminates mandate to purchase health insurance in 2019

8. Increase in estate tax exemption levels


Business Owners
1. Corporate taxes reduced to 21% plus repeal of Corporate Alternative Minimum Tax

2. Special deduction of 20% for certain pass through entities subject to certain limitations

3. Depreciation / Capital Investments
     • Bonus depreciation extended and increased to 100% from Sept 2017 through 2023
     • Bonus now also allowed with used property
     • Section 179 increased from $500,000 to $1 million

4. Cash based method of accounting for taxes – threshold now increased from $5 million to $25 million gross receipts

5. Limitation on deductibility of interest expense for businesses

6. Net Operating Losses
     • Change from 2 year carry back and 20 year carry forward to no carry back (with certain disaster related exceptions) and unlimited carry forward
     • Limited to 80% of taxable income each year

7. Section 1031 like kind exchanges now limited to real property

8. Entertainment expense no longer allowed (meal reimbursement continues to be allowed)

9. Repeal of Domestic Production Activities Credit

10. Significant changes to taxation of foreign income and repatriation of foreign income including the introduction of a hybrid territorial system

If you would like additional information, please contact us at 972-881-1501 or 817-840-3220 to schedule an appointment with your tax advisor to discuss.