With the inaugural year of the Tax Cuts and Jobs Act of 2017 under everyone’s belts it’s important to highlight some of the larger and most impactful takeaways. For c-corporations, the repeal of the alternative minimum tax provides much relief. C-corporations are no longer subject to the alternative minimum tax! But that’s not all. Carryfowards from previous years can be used to offset regular tax. Those carryforwards from previous years are also refundable for 50% of the uncredited balance. Moving forward in 2021, the unused carryovers will be 100% refundable for c-corporations.
Now is the time to discuss your plans with your tax advisor so that you can file the correct paperwork to receive your refund. Looking to the future, c-corporations taxation will be simplified and the repeal of alternative minimum tax on c-corporations could mean considerable savings overall!