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December 15, 2017 10:02 PM

Getting The Most Out Of Tax Reform

It's a bill that will likely impact every single one of us, but how much do you know about tax reform?

The measure is supposed to go up for a vote in both chambers of Congress next week.

Here's a look at how you can make the most of it.

You might not have heard about Grand Prairie Foods, but the Sioux Falls company ships out hundreds of meals across the country every week.

"Hampton Inn Hotels, if you've ever stayed there and had their scrambled eggs, that comes through here," CFO Tim Koch said.

Koch is following the tax reform bill to make sure he makes the right moves for his company.

"In terms of the corporate rate, going from 34 percent to 21 is going to be huge for us. It's going to free up cash flow that we can invest in programs that benefit employees," Koch said.

In addition to figuring out how the reform will impact you, you can also take steps right now that will benefit your wallet.

"We really anticipate that most people's tax rate is going to be going down, so any chance you have to defer income into next year or accelerate deductions into the current year is going to create an opportunity to create some permanent tax savings on those changing rates," Eide Bailly Partner Blake Crow said.

For example, you might want to make your charitable donations before the end of the year or prepay expenses.

"We've seen a lot of businesses that have the ability to do that are really taking advantage of that and prepaying for as many things as they can," Crow said.

Also if you plan to buy a new car soon, you might want to do that before the end of the year.

"If you're going to spend money either in December or January, you would be better off spending it in December," Crow said.

All steps that Koch is considering in order to make the right decisions for himself and his company.

"We like to know what the impact is going to be on cash flow primarily but then also what that impact will be to the bottom line," Koch said.

If you would like to learn more about how the bill could impact you, Eide Bailly is hosting a free seminar next Tuesday morning.

You can find more details and register here.

 

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