2017 Business Tax Planning Supplement

2017 Business Tax Planning Supplement
Transporting you closer to your goals

2
2017 CBIZ MHM, LLC BUSINESS TAX PLANNING SUPPLEMENT
There are many variables involved in getting
from point A to point B, and the same can
be said for tax planning. The IRS remained
active throughout 2016, announcing new
and proposed rules covering a number of
subjects that could impact your organization’s
decision-making. Such rules include proposed
regulations to govern valuation discounts over
family-controlled entities, final regulations
covering debt-versus-equity classifications
of certain corporate debt (Section 385),
temporary regulations to establish the status
of a partner in a partnership for employment
tax purposes, and temporary regulations to
facilitate part of the new partnership audit
regime. New and immediate reporting and
disclosure requirements enacted in 2016 will
also affect an array of parties participating in
transactions that involve captive insurance
companies that have made the election under
Code Section 831(b) to exempt premiums
earned from income (micro-captives).
The election of a Republican president and
Congress during 2016 sets the stage for
potentially vast and sweeping changes to
our current tax system. Tax reform is likely
on the horizon, and as a result, the fate of
the Affordable Care Act, the estate and gift
tax, the alternative minimum tax and other
deep-rooted elements of the tax system has
become uncertain. While we do not anticipate
that any comprehensive tax reform will be
retroactive, planning beyond 2016 must
now be made with a watchful eye over these
emerging developments.
As a companion to our book on business
tax planning, Navigating the Business
Lifecycle: Tax Strategies for Success, this
supplement recaps some of the key federal
tax developments of 2016, discusses
important changes for 2017 and provides
some important rates, figures and thresholds
to provide a roadmap for your tax planning.
We hope that you will find this information
useful as you plan for the coming year.
Remember to refer back to Navigating
the Business Lifecycle: Tax Strategies for
Success for tax planning ideas that may be
implemented throughout the year. To order a
complimentary copy of our book, contact your
local CBIZ MHM tax professional or order it
directly from www.cbiz.com.
Map Your Route to Success

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Table of Contents
Tax Provisions................................... 4
Tax Form Due Date Changes........... 8
ACA..................................................13
IRS Developments..........................14
Tax Tables.......................................22

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Pack In Your Tax Provisions Benefits
On Dec. 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015
(PATH Act), which for the first time permanently enacted a number of the tax breaks historically
referred to as “extenders” because of the need to extend them repeatedly year after year. Several
prominent business provisions that were extended permanently under the PATH Act include:
■■ Research Development (RD) Tax Credit – Not only has the RD credit been
permanently extended, it has also been enhanced. Beginning in 2016 tax years, eligible
small businesses (those with average annual gross receipts of $50 million or less) may claim
the RD credit against alternative minimum tax (AMT) liabilities. Also beginning with 2016
tax years, start-up companies with gross receipts of less than $5 million may elect to claim
the RD credit against payroll tax liabilities.
■■ Increased Section 179 Expensing Election – Businesses with adequate taxable income
now have the permanent ability to immediately deduct up to $500,000 of qualified tangible
property (including off-the-shelf computer software). The Section 179 deduction begins to
phase out when total qualified purchases for the year exceed $2 million. These two amounts
are now adjusted for inflation, with the dollar limitation adjusting to $510,000 for 2017, and
the investment limitation adjusting to $2.01 million and $2.03 million in 2016 and 2017,
respectively. Air conditioning and heating units are now eligible property, and other enhanced
benefits are available for qualified real property (qualified leasehold improvements, qualified
restaurant property and qualified retail improvement property).
■■ 15-Year Straight Line Cost Recovery – Traditionally depreciated over 39 years, qualified
leasehold improvements, qualified restaurant property and qualified retail improvement
can now be permanently depreciated over 15 years on a straight line basis. Improvements
must be made to the interior of nonresidential real property more than three years after the
building was placed in service. Qualifying restaurant and retail improvements can include
improvements to owner-occupied or leased space while qualifying leasehold improvements
may only include leased space (related party leases do not qualify).

5

6
■■ Bonus Depreciation – Taxpayers may once
again elect to take additional first-year (bonus)
depreciation on qualifying asset purchases
through Dec. 31, 2019. The bonus depreciation
percentage, however, decreases in the later
years as follows:
■■ Work Opportunity Tax Credit (WOTC) –
The WOTC was extended through 2019 to
give employers an incentive to hire workers in
certain targeted groups that have a high rate
of unemployment. While it can vary by targeted
group and number of hours worked, the credit
generally is equal to 40 percent of the eligible
employee’s wages up to $6,000 (a $2,400
credit). The PATH Act also expands the targeted
groups by adding qualified individuals who have
been unemployed for 27 weeks or more.
Year Placed in
Service
Bonus Depreciation
Percentage
2015 50%
2016 50%
2017 50%
2018 40%
2019 30%
5-Year Extensions Through 2019

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Provisions Expiring at the End of 2016
■■ Five-year cost recovery for certain energy property;
■■ Credit for construction of new energy-efficient homes; and
■■ Energy-efficient commercial buildings deduction
A chart summarizing major business and energy provisions under the PATH Act,
their extension periods, and whether they’ve been otherwise modified by the new
legislation is provided below.
Select Provisions Extended or Made Permanent By the
Protecting Americans from Tax Hikes Act of 2015
Tax Provision Extension Modified?
Business Energy Provisions
RD Tax Credit Permanent Yes
$500,000 Section 179 expensing election Permanent Yes
15-year depreciation for qualified leasehold, retail improvement
and restaurant property
Permanent No
100% exclusion of gain from sale of qualified small business stock Permanent No
Reduction from 10 to 5 years the recognition period for built-in
gains of S corporations
Permanent No
Basis adjustment to stock of S corporations making charitable
contributions of appreciated property
Permanent No
Enhanced charitable deduction for contributions of food inventory Permanent Yes
Subpart F exception for active financing income Permanent No
Bonus Depreciation Through 2019 Yes
Work Opportunity Tax Credit Through 2019 Yes
New Markets Tax Credit Through 2019 No
Look-through treatment for certain payments between related CFCs Through 2019 No
5-year cost recovery for certain energy property Through 2016 No
Energy-efficient commercial buildings deduction Through 2016 No
Credit for energy-efficient new homes Through 2016 No

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Monitor for Date Changes
The original and extended due date of many common federal income tax and information reporting
forms will change beginning in 2017 (for tax year 2016 filings). These changes impact all taxpayers that
issue Forms W-2 or 1099-MISC, taxpayers with foreign bank accounts, and taxpayers organized as C
corporations, partnerships (including limited liability companies (LLCs) taxed as partnerships), trusts and
not-for-profit entities.
Form W-2 and Form 1099-MISC
Government Copy Now Due
January 31
Taxpayers are required to issue Form W-2 to
their employees and Form 1099-MISC to their
independent contractors by January 31 of the
following year. The copies filed with the federal
government, however, historically were not due
until February 28 if filing by paper, or March 31
if filing electronically. Beginning with statements
filed in 2017 (for the 2016 calendar year), the
government copies of these forms also must be
filed by January 31.
Foreign Bank Account Reporting
Now Due April 15;
Six-month Extension Available
FinCEN Form 114, the foreign bank and financial
accounts report (FBAR), historically was due on
June 30 following the end of the calendar year
with no possibility for extension. To more closely
align the FBAR due date with those of the income
tax returns for the related taxpayers, the 2015
Highway Funding Act accelerates the FBAR’s
original due date to April 15, but now provides
for a six-month extension until October 15 if the
1040 is extended.
Partnership Form 1065 Calendar
Year Due Date Accelerated to
March 15
Prior to the 2016 tax year, Form 1065 for
partnerships (and limited liability companies
taxed as partnerships) was due three and a half
months after the end of the fiscal year, or April 15
for the vast majority of partnerships (that utilize a
calendar year-end). For tax years beginning after
Dec. 31, 2015, the original due date of Form
1065 is accelerated to March 15 for calendar
year-end partnerships. Similarly, the due date for
fiscal year-end partnerships has changed to two
and half months after year-end.
The extension period for Form 1065 has
increased from five months to six months,
meaning that the extended due date for Form
1065 has not changed. As a result, the extended
due date for calendar year-end partnerships
continues to be September 15.
Several states also have accelerated the original
due dates of their state partnership income
tax forms as a result of the federal changes,
including, but not limited to: Arizona, California,
Georgia, Louisiana, Mississippi, Nebraska, New
Hampshire, New Mexico, New York, Oregon,
Rhode Island, South Carolina, Vermont and West
Virginia. Make sure to confirm whether your state
conforms to these changes.

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Be Aware of Delays
C Corporation Form 1120 – Calendar Year due April 15;
Extended and Fiscal Year-End Dates Complicated
For tax years beginning after Dec. 31, 2015, Form 1120 for a calendar year-end C corporation
is due April 15, instead of March 15. The due date for Form 1120S for S corporations is
still March 15 for calendar year-end filers. The Form 1120 due dates for fiscal year-end C
corporations and C corporations on extension are less straightforward:
■■ Calendar year-end – The due date is April 15 for tax years beginning after Dec.
31, 2015 with an automatic five-month extension period. As of the date of this
publication, however, the IRS issued draft instructions for the Form 7004, which
authorized an automatic six-month extension period. As draft instructions cannot be
relied upon, verify whether the automatic extension period is for five months or six
months if you are extending the filing date of a calendar-year return.
••C corporations with a tax year ending Dec. 31, 2016, must file Form
1120 by April 15, 2017, with an extension available until Oct. 15, 2017
(according to the draft Form 7004 instructions).
■■ June 30 year-end – The due date is September 15 (two and half months after year-
end), but the extension period is changed to seven months (to April 15), for tax years
ending before Jan. 1, 2026. For tax years beginning after Dec. 31, 2025, the original
due date will change to October 15 (three and a half months after year-end), and the
extension period will change to six months (remains April 15).
••C corporations with a tax year ending June 30, 2017, must file Form
1120 by the original due date of Sept. 15, 2017, with an extension
available until April 17, 2018.
■■ Fiscal year-end other than June 30 – The original due date is changed immediately
to three and a half months after year end with a six-month extension period, for tax
years beginning after Dec. 31, 2015.
••For example, C corporations with a tax year ending March 31, 2017,
must file Form 1120 by the original due date of July 17, 2017, with an
extension available until Jan. 16, 2018.
As of this publication date, four states still have original due dates for their C corporation tax
returns that are prior to the April 15 due date for the federal Form 1120 – Arkansas, Delaware,
Massachusetts and Wisconsin. Although these states may ultimately take action to conform
their due dates to the federal dates, those actions require the passage of state legislation, so
nothing is certain. Make sure to follow your state’s conformity rules before filing.

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Note Other Changes in Extensions
While the most dramatic changes are detailed on the previous page, several other due date changes go
into effect with 2016 tax year filings due in 2017, mostly related to extended due dates:
■■ Form 1041 for trusts and estates – The extension period is changed from five months to five and
a half months (September 15 to September 30 for calendar year-end filers).
■■ Form 990 series for exempt organizations – The two separate three-month extension periods
have been replaced by a single six-month extension period.
■■ Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue
Code – The extension period is changed from three months to six months.
■■ Form 5227, Split-Interest Trust Information Return – The extension period is changed from
three months to six months.
■■ Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under
Section 4953 and Computation of Section 192 Deduction – The extension period is changed
from three months to six months.
■■ Form 8870, Information Return for Transfers Associated With Certain Personal Benefit
Contracts – The extension period is changed from three months to six months.

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Status Update: ACA
Penalties for qualified health reimbursement
accounts (HRAs) under the Patient Protection
Affordable Care Act (ACA) have been waived
for qualifying small businesses under the 21st
Century Cures Act, signed into law on Dec. 13,
2016. Many small businesses elect to reimburse
employees or their non-employer sponsored
health insurance provider for the employees’
health care coverage and exclude
the reimbursement payments from the
employees’ gross income. The IRS previously
determined that these arrangements constitute
employer payment plans and were subject to
the health care reform provisions enacted by the
ACA. These reforms mandate that employees’
health care coverage must cover preventive care
services without out-of-pocket expenses to the
employee. Plans also would not be able to limit
essential health care benefits.
The ACA penalizes the employer if the employees’
plans do not meet these ACA requirements
by levying an excise tax of $100 per day per
affected employee. With temporary relief from the
excise tax expiring after June 30, 2015, the 2016
legislation provided small businesses retroactive
and prospective relief from the excise tax if
certain conditions are met. Employees must not
pay more than $4,950 per year for their coverage
($10,000 for families) and must demonstrate
their plan provides minimum essential coverage.
Additionally, the employer cannot be an
applicable large employer (an employer with 50
or more full-time employees or equivalents during
a calendar year).
The act also made changes regarding funding
for medical research, and updates the approval
process for experimental drugs and mental
health care.

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Checking in with the IRS
Grab Family Valuation Discounts
The estate and gift tax rules, which became
permanent after 2012, may experience dramatic
changes based on new Section 2704 proposed
regulations released by the IRS on Aug. 2, 2016.
Because the use of valuation discounts to reduce
the estate and gift tax valuation of family-owned
businesses is such a powerful estate planning
tool, proactive measures may be warranted to
take advantage of existing rules while they’re still
available.
Case law over the years has firmly established
that ownership of less than a controlling interest
in a business or an investment entity provides
justification for valuation discounts in the context
of estate, gift and generation skipping transfer
(GST) taxes. Such valuation discounts include
those for lack of control (i.e., a minority interest)
and for lack of marketability (i.e., the inability to
sell an interest for its true value due to the lack of a
true market of potential buyers). When combined,
these discounts can range from 30 to 50 percent
or higher, depending on facts and circumstances.
Family limited partnerships (FLPs) and LLCs
emerged as popular planning vehicles utilized to
take advantage of these valuation discounts.

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Applying such discounts in the context of family-controlled
entities has long been a point of contention for the IRS.
Unsuccessful in attempts to restrict the use of valuation
discounts through legislative changes, the IRS released
proposed regulations to curb the use of such discounts. The
proposed regulations effectively curtail the use of valuation
discounts through the following measures:
1. Disregard restrictions on a holder’s redemption
and liquidation rights (other than those mandated
by federal or state law) in a determination of
the fair market value belonging to an interest
transferred from a family member, to the extent
such restrictions will lapse at a given time or are
capable of being removed by the transferor or
members of the transferor’s family;
2. Treat a transferor’s lapse of voting rights or rights
to liquidate the entity as an additional taxable
transfer from the transferor of such rights, if
the lapse occurs within three years prior to the
transferor’s death and the entity is controlled by
the transferor’s family immediately before and
after the lapse; and
3. Disregard a holder’s status as an assignee in a
determination of the fair market value belonging to
a transferred interest.
These rules will not become effective until 30 days after
the final regulations are issued, which is anticipated to
be during 2017 (notwithstanding measures taken by the
Trump Administration to block implementation of these
regulations). The family valuation discounts to which
taxpayers have become accustomed over the past 20
years may not continue to be available. Therefore, careful
consideration should be given concerning transfers that
make use of existing rules today. Bear in mind, however,
that the incoming Administration and the House of
Representatives have suggested various proposals to
eliminate or curtail the estate tax entirely.

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Prepare for New Section 385 Regulations
The IRS issued final and temporary regulations on Oct. 13,
2016, providing new rules for the characterization of related
party securities as debt or equity for U.S. tax purposes. These
regulations impose new documentation requirements on
instruments issued on or after Jan. 1, 2018, if certain loans
between related parties will be permitted to be treated as bona
fide debt. The thrust of the regulations are an effort to curtail
the amount of U.S. tax benefits (e.g., interest deductions)
obtained by related parties through financing transactions
that have insufficient legal and economic substance.
Notwithstanding the effective date for documentation
requirements, debt instruments issued after April 4, 2016, may
be subject to recharacterization under the new regulations.
These regulations apply only to intra-group debt in excess of
$50 million (intra-group debt below this threshold is exempt).
The regulations primarily target C corporations; for now,
securities issued by foreign companies and S corporations are
excluded. Parties are related for these purposes by reference to
membership in an “expanded group,” as determined generally
by reference to the ownership attribution rules of Internal
Revenue Code Section 318.
These regulations specifically apply to debt issued by one
member of an expanded group to another as part of a
distribution, an acquisition of member stock, or an exchange
for member assets in certain types or reorganizations.
Debt issued within a 72-month period surrounding the date
of distribution or acquisition is likewise subject to these
regulations. “Qualified short-term debt instruments” that either
satisfy a debt-to-working-capital-ratio test or a 270-day test
are potentially exempt, as are “ordinary course loans” used
to fund inter-company trade payables. Further, distributions
not exceeding current earnings and profits (EP) and EP
accumulated after April 4, 2016, are also exempt from these
rules. A number of other exceptions are provided for certain
capital contributions, constructive distributions, and capital
contributions resulting from transfer pricing adjustments.
Taxpayers affected by these regulations should develop and
test systems to ensure timely documentation compliance, and
should consider alternative means of financing to escape the
scope of the final rules.

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The IRS issued temporary regulations on May 3,
2016, mandating that a partner in a partnership
that owns a disregarded entity (DRE) may not be
treated as an employee of the DRE for federal
tax purposes. Because such DREs ordinarily are
treated as separate employers for employment
tax purposes, many individuals sought to take
advantage of that framework while they remained
partners in the partnership that owned the DRE.
Taxpayers had tried to use this arrangement to
participate in tax-favored employee benefit plans.
The new regulations do not impose any new rules
or changes to arrangements involving entities
treated as partnerships that are owned by other
upper-tier partnerships. As the IRS requested
comment on such arrangements, it appears that
partners of such upper-tier partnerships may be
treated as employees of the lower-tier partnership.
The new regulations are effective on Aug. 1, 2016,
or if the following alternative date is later, then
on the first day of the latest starting plan year
following May 4, 2016, of an affected plan (based
on the plans adopted before, and the plan years
in effect as of that date). “Affected plans” include
qualified plans, health plans, or cafeteria plans in
which the affected partner-employee participated.
Check Employment Tax Treatment for Partnerships

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The IRS issued temporary regulations on May
3, 2016, to provide procedures by which a
partnership may choose to apply new partnership
audit rules to any partnership return filed
for tax years beginning after Nov. 2, 2015.
The Bipartisan Budget Act of 2015 repealed
the current TEFRA unified partnership audit
procedures (TEFRA) and special rules relating
to electing large partnerships (ELPs). Generally
starting in 2018, the new partnership rules
streamline partnership audits into a single set of
rules for both the partners and the partnership.
The partnership can elect to have the new
partnership rules apply to earlier periods, which
is the subject of the temporary regulations. The
new regime generally provides for assessment
and collection of underpaid taxes, penalties and
interest at the partnership level. The partnership
alternatively may elect to assign the assessment
of underpaid amounts in the current year to
those who were partners in the year to which the
adjustment relates. Further, partnerships with
100 or fewer qualifying partners annually may
opt out of the new rules, electing instead to be
subject to audit at the individual partner level.
The temporary regulations provide the
procedures by which a partnership may elect
Upgrade: The New Partnership Audit Rules

19
to have the new partnership audit rules apply
to taxable years beginning after Nov. 2, 2015
and before Jan. 1, 2018. Specifically, a written
statement is to be provided by the partnership
to the IRS within 30 days of the partnership’s
receipt of a written IRS examination letter (i.e.,
the IRS letter notifying the partnership that it has
been selected for an examination). Partnerships
may not elect to have the new partnership audit
rules apply early to an administrative adjustment
request (AAR) filed prior to Jan. 1, 2018, so
existing TEFRA procedures must continue to be
used for a partnership’s AAR filing.
The mechanics provided by the new regulations
for an election to opt in to the new partnership
audit rules do not require immediate attention,
because the election cannot be made until
such time as the partnership is notified of an
IRS examination. Nevertheless, the underlying
scope of the new partnership audit rules and
their 2018 effective date absolutely require
ongoing attention, and certain proactive
measures in many cases. Partnerships must
review their partnership and LLC agreements to
determine what changes should be made, and
what impact those changes will have. Changes
will be necessary for nearly every partnership,
so proactive consultation with professionals
should begin as soon as possible in order for the
partnership to be ready for IRS application of the
new rules starting in 2018.

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Plan for More Micro-Captive Requirements
On Nov. 1, 2016, the IRS unveiled a new obligation to disclose information pertaining to certain
transactions made by captive insurance companies that have made the election under Code
Section 831(b) to exempt premiums earned from income. The disclosure requirement applies
to all parties that have “participated” in these transactions, as well as material advisors.
Disclosure filings originally were due Jan. 30, 2017, however the IRS recently extended the due
date for disclosure filings to May 1, 2017. In most cases, reporting is required if a participant
entered into a transaction after Nov. 2, 2006, but as of Nov. 1, 2016, reporting is limited to
years for which the statute of limitation for assessment remains open.
Under Section 831(b) insurance companies (other than life insurance companies) can elect to
have income generated from underwriting premiums excluded from taxation when such income
for the year is less than $1.2 million (this threshold increases to $2.2 million in 2017). These
insurance companies (micro-captives) may be owned directly or indirectly by the same taxpayer
operating a trade or business that is insured by the company making the Section 831(b)
election.
Reporting is required for parties participating in a transaction on or after Nov. 2, 2006, when all
of the following criteria are met:
1. A business owner directly or indirectly owns an interest in an entity conducting a
trade or business (the Insured);
2. Another entity (the Captive) that is directly or indirectly owned by the business owner,
the Insured, or persons related to either, enters into contracts that the parties treat as
insurance coverage (or the Captive reinsures the existing risks of the Insured);
3. The Captive makes an election under Section 831(b);
4. The business owner, the Insured, or persons related to either, own at least 20 percent
of the voting power or stock value of the Captive; and
5. During a five-year computation period (or the entire life of the Captive if less than five
years), one or both of the following apply:
••The Captive’s liability for losses and administrative claims expenses is less
than 70 percent of earned premiums (reduced by policyholder dividends); or
••The Captive directly or indirectly makes, or agreed to make, any portion of
its underwriting premiums available to the business owner, the Insured,
or persons related to either, as financing proceeds or proceeds from some
other transaction that does not produce taxable income to the recipient.

21
Parties “participating” in such a transaction
include the business owner, the Insured, and
the Captive (including any intermediary fronting
the Captive), where such party’s tax return
reflects a tax consequence or a tax strategy of a
transaction of interest as defined in the Notice.
Material advisors involved with the promotion,
management or implementation of these
transactions are likewise subject to the new
disclosure rules.
Disclosure is completed on Form 8886,
Reportable Transaction Disclosure Statement, to
the IRS Office of Tax Shelter Analysis (OTSA). For
transactions involving prior years that are within
the scope of reporting, Form 8886 must be filed
on or before May 1, 2017. For current year and
prospective participation, a properly-completed
Form 8886 must be attached to the tax return,
and a duplicate copy must be sent to OTSA if the
transaction is being disclosed for the first time. If
a first time participant files its income tax return
prior to May 1, 2017, however, the due date for
filing the Form 8886 is still extended to May 1,
2017. If the taxpayer extends the filing and the
extended due date is after May 1, 2017, the
disclosure should be attached to the return with
the copy sent to OTSA.
A taxpayer that does not comply with the
disclosure rules is subject to a penalty equal
to 75 percent of the tax benefits obtained from
reporting the transaction on the taxpayer’s return
(capped at $50,000 for entities and $10,000
for individuals), where the minimum penalty is
$10,000 for entities and $5,000 for individuals.

22
2017 Tax Brackets
If taxable income is: Then income tax equals:
Single (S)
Not over $9,325 10% of the taxable income
Over $9,325 but not over $37,950 $932.50 plus 15% of the excess over $9,325
Over $37,950 but not over $91,900 $5,226.25 plus 25% of the excess over $37,950
Over $418,400 $121,505.25 plus 39.6% of the excess over $418,400
Married Filing Jointly (MFJ)
Not over $18,650 10% of the taxable income
Over $18,650 but not over $75,900 $1,865 plus 15% of the excess over $18,650
Over $416,700 but not over $470,700 $112,728 plus 35% of the excess over $416,700
Over $470,700 $131,628 plus 39.6% of the excess over $470,700
Tax Tables

23
Other 2017 Tax Rates / Deduction Limitations
Long-term Capital Gains /Qualified Dividends Rate
20% for taxpayers in 39.6% bracket
15% for taxpayers in 25%, 28%, 33% or 35% brackets
0% for taxpayers in 10% or 15% brackets
Overall Limitation on Itemized Deductions
Itemized deductions reduced by lesser of: 3% of the
amount of AGI in excess of $313,800 MFJ ($261,500 S)
or 80% of allowable itemized deductions
Phase-out of Personal Exemptions
Reduced by 2% for each $2,500 or fraction thereof in
excess of $313,800 MFJ ($261,500 S)
Maximum Estate / Gift Tax Rate 40%
Other Important Indexed
Amounts for 2017
IRA Contribution Limitation $5,500
IRA Age 50 “Catch Up”
Contribution Limitation
$1,000
Section 401(k) Elective Deferral
Limitation
$18,000
401(k) Age 50 “Catch Up” Deferral
Limitation
$6,000
Section 408 SIMPLE Elective
Deferral Limitation
$12,500
SIMPLE Age 50 “Catch Up”
Deferral Limitation
$3,000
Section 415 Limit for Defined
Contribution Plans
$54,000
Section 415 Limit for Defined
Benefit Plans
$215,000
Section 404 Annual Compensation
Limitation
$270,000
Other Important Indexed
Amounts for 2017
Section 179 Expensing Limit $510,000
Section 179 Investment Threshold $2,030,000
Bonus Depreciation Percentage 50%
Personal Exemption $4,050
Individual AMT Exemption (MFJ) $84,500
Individual AMT Exemption (S) $54,300
Social Security Wage Base Limit $127,200
Lifetime Gift / Estate Exclusion $5,490,000
Annual Gift Exclusion $14,000
Foreign Earned Income Exclusion $102,100
Standard Business Mileage Rate $0.53½ /mile

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2017 Business Tax Planning Supplement

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2017 Business Tax Planning Supplement