Some law firms and other pass-through entities may wind up converting to so-called C corporations, which now enjoy tax rates of 21 percent, instead of 35 percent. (There’s a potential drawback: Corporate profits get taxed a second time when they’re received by individuals, usually as dividends.)
Expect lots of creativity from America’s tax experts this year. After all, most of them have a strong incentive to bend the rules. As well-paid service professionals, they’re personally excluded from the new law’s biggest benefits. “That’s an issue near and dear to every lawyer and accountant’s heart,” said Jack Wilk, managing partner of the law firm Wilk Auslander.
This article was provided by Bloomberg News.