Tax Changes Affecting Holders of Pass-Through Vehicles

Wolters Kluwer and Morrison & Foerster Webinar Series

02/07/2018 01:00 p.m. - 02:00 p.m. EST

Corporate Finance | Capital Markets, Federal Tax, Financial Services, Partnership Taxation, and REITs

Webinar

The Tax Cuts and Jobs Act of 2017 (H.R.1), signed into law by President Trump on December 22, 2017, is the most sweeping change to the U.S. tax code in decades. This historic bill impacts every taxpayer, and calls for lowering the individual and corporate tax rates, repealing the ACA’s shared responsibility requirement, enhancing the child tax credit, and more.

Wolters Kluwer and Morrison & Foerster will host a three-part webinar series focusing on three of the most impactful areas within the tax overhaul.

Session 1: Tax Changes Affecting Holders of Pass-Through Vehicles

Prior to the Tax Cuts & Jobs Act of 2017, owners of partnerships, S corporations, and sole proprietorships – as “pass-through” entities – pay tax at the individual rates, with the highest rate at 39.6 percent. Now, H.R. 1 allows a temporary deduction in an amount equal to 20 percent of qualified income of pass-through entities, subject to a number limitations and qualifications. As well as a reduction in the threshold amount above. The new law also contains rules that will prevent pass-through owners – particularly service providers such as accountants, doctors, lawyers, etc. – from converting their compensation income taxed at higher rates into profits taxed at the lower rate. 

We will discuss the prior law, current law, and focus on the following areas

  • Elimination of miscellaneous itemized deductions;
  • Impact on investment management fees and investment fund structures;
  • New 20% deduction for “qualified business income;” 
  • Business income earned through pass-throughs; 
    • Treatment of services income
  • REIT dividends; and
  • MLP income deduction for qualified business income.

Speakers:

  • Thomas A. Humphreys, Senior Counsel, Morrison & Foerster LLP
  • Remmelt A. Reigersman, Partner, Morrison & Foerster LLP 

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