Boom time ahead for Long Island?
August 01, 2018
Louis Vlahos, partner, who leads the Farrell Fritz tax practice group is quoted in this article.
Tax reform, Wayfair case and business-friendly climate spurring growth
In the wake of last year’s landmark tax law and amid a generally favorable business climate, there is potential for an economic boom in the Long Island businesses community, according to an attorney-accountant panel that met last month at the Uniondale law offices of Farrell Fritz.
The Tax Cuts and Jobs Act of 2017, which was passed last December, ushered in the most sweeping tax reform in more than three decades, including the introduction of many business-friendly tax cuts, including the reduction of the corporate tax rate from 35 percent to 21 percent.
However, with the new law come nuances and details that still must be ironed out.
“The tax law has just been passed, and guidance is coming out every day,” said Louis Vlahos, a partner at Farrell Fritz who oversees the law firm’s tax practice. “You have to make decisions based on what you foresee reasonably.”
Attorneys and accountants have met with clients to come up with a customized plan based on each company’s situation.
“There is no tried and true strategy yet,” Vlahos said. “Some companies wanted to rush into converting to a C-corp because they would pay just 21 percent in tax, but it’s not appropriate for every business.”
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Reprinted with permission from Long Island Business News, July 27, 2018, No. 30
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