March 15 Tax Filing Precautions

Marc Wieder, partner at Anchin, Block & Anchin

NEW YORK CITY—Tax year 2018 is the first full-year that tax returns are subject to the Tax Cuts and Jobs Act. With the March 15 deadline for S corporations and partnerships fast approaching, Marc Wieder, CPA, CGMA, partner at Anchin and co-leader of Anchin’s real estate group highlights a few changes to consider when filing taxes.

For 2018, the interest rate for large businesses was limited to 30% of a company EBIDA. There’s an exclusion for real estate companies who can choose to deduct 100% of their interest deduction. But that makes them subject to the Alternative Depreciation System. This accounting generally increases the number of years over which property is depreciated, and therefore lowers the annual deduction.