We are now in the second year of the Tax Cuts and Jobs Act (TCJA) and the implementation has resulted in mixed results with some clients’ tax bills going down, while others have experienced an increase. We have found that the impact on each individual and business is unique. Again, for this year, we believe a personalized review of your tax situation and conversation to discuss tax planning strategies would be worthwhile. Preparation of tax projections for your particular facts may be needed before year-end to see if there are strategies to minimize your taxes.

The following are highlights of the key changes under the TCJA affecting individuals and businesses. We encourage you to contact us to schedule a time to discuss how the TCJA may affect your unique tax situation and to discuss any specific questions you may have on any of these changes. Of course, many traditional tax planning strategies may continue to apply and it will be important to let us know if anything has changed significantly from 2018.



  • Changes in tax rates
  • Increased standard deduction
  • Elimination of personal and dependent exemptions
  • Child and family tax credit
  • Changes to itemized deductions, including deductions for taxes and miscellaneous itemized deductions
  • Alimony taxation
  • Estate and gift tax exemptions
  • New deduction for qualified business income––Section 199A
    • Allows individuals a deduction of 20% of qualified business income from a partnership, S corporation, or sole proprietorship
    • There are many limitations and restrictions to this provision that requires individual analysis
    • Safe Harbor for rental services––see below



  • New deduction for qualified business income––Section 199A
  • New corporate tax rate
  • Alternative minimum tax (AMT) repealed
  • Bonus depreciation and Sec. 179 expensing of fixed assets
  • Interest expense deductibility
  • Entertainment expense repeal
  • Like-kind exchange restrictions

Compliance with the strict documentation requirements of the TCJA and the 199A deduction for a rental real estate enterprise as described in IRS Notice 2019-07 and Revenue Procedure 2019-38, will be of utmost importance. if you have any questions on qualification for this deduction and meeting the documentation requirement under the safe harbor tests, please contact us to discuss.

  • Safe harbor for rental real estate enterprise (RPEE)
    • Books and Records. Separate books and records must be maintained.
    • Hour Requirement. 250 or more hours of rental services performed.
    • Contemporaneous Records. Includes time reports, logs, or similar documentation.
    • Attach Statement to Return. With a description of properties and representation of compliance.


We are available to help you identify opportunities within the new law that apply to you. Planning ahead can help you to verify tax liabilities, minimize your tax bill, and position you for greater financial success. We look forward to hearing from you as soon as possible.