CAI-NJ Dec. 2018 (w)

TAX REFORM... from page 48.

$1,000 per child to $2,000 per child. Additionally, a portion of the credit is now refundable, and the phase-out thresholds have been sub- stantially increased so many more Americans will receive this bene- fit. For those individuals with 529 Plans, the new rules provide that

those funds can be used to pay for elementary or secondary schooling.

Business Tax Provisions The cornerstone of this legislation was the reduction in the corporate tax rate from 35% to 21%. The intent was to make America more competitive in a global environment. For those tax- payers filing Form 1120-H, the rate remains at 30%. A change benefitting all business- es was the expansion of two of the most common depreciation provisions. Section 179 now provides for the imme-

There were some favorable chang- es related to children and educa- tion. The Child Tax Credit has been expanded such that the credit amount has been increased from

tech touch value LEVERAGING TECHNOLOGY TO STREAMLINE COMMUNICATION, OPERATIONS AND REPORTING. CULTIVATING RELATIONSHIPS TO ENSURE HIGHLY SATISFIED ASSOCIATION RESIDENTS AND STAKEHOLDERS. PRESERVING AND ENHANCING VALUE THROUGH BEST-IN-CLASS SERVICES.

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“For those taxpayers filing Form 1120-H, the rate remains at 30%.”

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diate expensing of up to $1,000,000 of qualified property. Additionally, the bonus depreciation provisions were also expanded to provide for the imme- diate expensing of 100% of the cost of qualifying property. Keep in mind that most of the surrounding states have different limitations than those under the federal rules. On the not so favorable side, there is a new limitation on the deductibility of business interest expense. A business taxpayer will no longer be able to claim as a deduction business interest that exceeds 30% of their adjusted taxable income (which is essentially the same as EBITDA). Any unused amount will be carried forward indefinitely. There is an exception to this limitation for those businesses that meet the definition of a “small business taxpayer” or are consid-

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Financial services Management services Communication services Construction & maintenance management Transition management services Emergency management Consulting Community Association Management

To learn more, visit IntegraMgtCorp.com or call Edward San George, MPA, PCAM at 973.770.1500 .

Corporate Office:

South Jersey Office:

364 North Main Street (Route 9), Suite 5 Manahawkin, NJ 08050 T (609) 660-0208

200 Valley Road, Suite 203 Mt. Arlington, NJ 07856 T (973) 770-1500

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