Federal Tax Cuts and Jobs Act for Banks

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Federal Tax Cuts and Jobs Act for Banks

2/8/2018 10:00 AM - 11:00 AM (CT)

The Tax Cuts and Jobs Act (the “Tax Act”) contains significant changes affecting banks. Please join us for a free webinar discussing those changes and how they will impact your bank. The changes to be covered include:

Changes Affecting All Banks

1. Meals and entertainment expenses – Elimination of deduction for entertainment expenses
2. Depreciation and expensing of fixed assets – 100% write-off of many fixed asset additions
3. Rate changes – Effect on tax-exempt investments
4. Moving expenses – Elimination of moving expense deduction
5. Changes in tax credits

Changes Affecting S-Corporation Banks Specifically

1. Individual tax rate changes
2. 20% deduction on pass-through income
3. S versus C – Choice of entity
4. Individual tax changes affecting shareholder reporting
5. Effect of changes on shareholder agreements

Changes Affecting C-Corporation Banks Specifically

1. Lower tax rates – Blended rates for fiscal year banks
2. Net operating loss carrybacks eliminated; carryforwards limited to 80% of taxable income
3. Repeal of Alternative Minimum Tax
4. Dividends received deduction changes
5. Cash basis reporting for tax
6. Income tax accounting and reporting considerations

Tax Act Impact – Customer-Related Changes

1. Mortgage interest
   1. Existing mortgages grandfathered
   2. Generally deductible on new loans up to $750k
   3. Limited to two qualified residences
2. Home equity interest – No deduction for home equity interest
3. Limitations on business interest expense deductions