“Tax Cuts and Jobs Act adds new considerations for M&A transactions”

Gary Wallace, Keiter Partner and Tax Leader, shared his insights on how the Tax Cuts and Jobs Act may affect future merger and acquisition transactions in the article, “Tax Cuts and Jobs Act adds new considerations for M&A transactions”, published by Virginia Business.

Excerpt:

After months of anticipation and countless negotiations, Congress finally passed the Tax Cuts and Jobs Act at the end of 2017. Hailed as the most significant change to the U.S. tax code in more than 30 years, Republicans hope that the new legislation will boost the economy by spurring job growth, driving wages higher and increasing corporate investment in the country. It is too soon to tell whether these goals will be met, but what we do know is that the legislation contains several provisions that will significantly impact deal flow in Virginia and across the United States. For those considering a merger or acquisition in 2018, it is important to note these tax provisions and adjust your strategies accordingly.

Among the most significant changes for deal flow are the changes to tax rates. Specifically, lowering the corporate tax rate to 21 percent. This has created significant buzz because for the first time in a long time, there is a large disparity between corporate and individual rates. Will this have an impact on the favorability of pass-through entities?

Access the full article.

Questions on how the new tax laws may affect mergers and acquisitions? Contact your Keiter representative or 804.747.0000 | Email.

Additional Resources:

• New Tax Law: What You Need to Know
• Do your 2017 investments qualify for the Virginia Qualified Equity and Subordinated Debt Credit?
• Due date reminders for non-income tax filings
• Individual Tax Planning: Neighborhood Assistance Program (NAP) Credit Benefits
• The Tax Cut and Jobs Act: 4 Tax Changes Homeowners Need to Know
• “Withholding Taxes: Are You Compliant?”