On April 3, 2018, Governor Scott Walker signed 2017 Assembly Bill 259 into law which addresses the recent federal tax reform and enacts a number of tax provisions. Most changes are effective for the 2018 tax year, but a few are retroactive to the 2017 tax year and may significantly alter your approach to tax planning.
View (or search) the complete summary.
A few key provisions Wisconsin has adopted:
Increased luxury auto depreciation limits
Limitation on deduction for qualified residence interest
Repeal of deduction for alimony payments
The ability to use 529 accounts to fund elementary and secondary education
Modification of treatment of S-Corporation conversions to C-Corporations
Wisconsin has not adopted:
The 20% deduction for qualified business income of pass-through entities
100 percent bonus depreciation
Limitation on Losses for Taxpayers Other Than Corporations
Limits on deductibility of business interest under section 163(j)
To see a full listing of what was adopted and what was not, please view or search the complete summary.
Wisconsin’s “back to school” sales tax holiday will take place on August 1 – 5, 2018.
Clothing, computers, computer supplies, and school supplies (with certain cost limitations) can be purchased free of sales tax for those five days. Read more here.
While we are, of course, available to provide you with any business, accounting or tax services, the information contained herein is general in nature; any advice regarding those services should not be construed as tax advice and is not intended as a thorough, in-depth analysis of specific issues, a substitute for a legal, accounting or tax advice or opinion, nor is it sufficient to avoid tax-related penalties to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Strive Tax & Accounting, LLC or other tax professional prior to taking any action based upon this information. Strive Tax & Accounting, LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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