Why you should be planning for new Iowa tax savings, this fall
Iowa is slowly but surely catching up with federal tax reform under the concept of “rolling conformity.” By systematically implementing reform over the next few years, the state is creating significant opportunities for planning and saving. Knowing when Iowa tax laws are phasing in or out – and how to optimally apply them – can result in greater income, cashflow and profitability.
Key Iowa tax planning opportunities for 2019 include:
• a tax rate decrease of nearly half a percent;
• increasing Section 179 expense threshold limits (but no bonus depreciation);
• allowance for 25 percent of the federal 199A qualified business income deduction for 2019 – with more allowed in future years; and
• continued allowance of like-kind exchanges for personal property, which are no longer allowed federally.
Because tax law is complex and ever-changing, clients depend on our highly experienced and specialized tax team to manage and optimize their federal, state and international tax obligations, while achieving appropriate savings.
If you’d like more information about the new tax laws and their timing, as well as the opportunities they create for you or your business, please contact an LWBJ tax professional.