2017 business tax planning supplement

2017 Business Tax Planning SupplementTransporting you closer to your goals

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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 ContentsTax 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 & BenefitsOn 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 (R&D) Tax Credit – Not only has the R&D 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 R&D 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 R&D 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).

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■ 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

R&D 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 ChangesThe 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 31Taxpayers 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 AvailableFinCEN 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 15Prior 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 DelaysC Corporation Form 1120 – Calendar Year due April 15; Extended and Fiscal Year-End Dates ComplicatedFor 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 ExtensionsWhile 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: ACAPenalties 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 IRSGrab Family Valuation DiscountsThe 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 RegulationsThe 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 (E&P) and E&P 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

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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 RequirementsOn 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.

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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.

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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

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Other 2017 Tax Rates / Deduction Limitations

Long-term Capital Gains /Qualified Dividends Rate20% for taxpayers in 39.6% bracket15% for taxpayers in 25%, 28%, 33% or 35% brackets0% for taxpayers in 10% or 15% brackets

Overall Limitation on Itemized DeductionsItemized 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 ExemptionsReduced 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

Economy & Finance