John Ransom Weighs Impact of Congress’ Tax Code on Businesses
In a Houston Chronicle article published in the Christmas Eve Business Section, Jackson Walker partner John Ransom discussed how the Tax Cuts and Jobs Act impacts U.S. business owners.
John’s comments addressed how the new tax changes may lead S corporations and partnerships, known as flow-through entities, to consider filing as C corporations.
“Accountants and tax lawyers rejoice, it’s Christmas from Congress!”
He continued with: “Forget any simplification. It’s going to wring people’s brains out certainly for the next couple of months.”
John pointed out that restructuring to enroll as a C corporation has drawbacks, including:
- double taxation;
- increased tax costs from disposing of appreciated assets;
- expenses associated with switching to a flow-through business; and
- political risks.
In the article, John advised each business owner to promptly analyze his situation promptly, meet with a tax advisor, and be wary if they receive tax advice that seems “too good to be true.”
For more information, read “Tax plan is Congress’ Christmas gift to accountants and lawyers.” The March 15, 2018, deadline mentioned in the article has since been extended to Sept. 17, 2018.
John M. Ransom serves as chair of our Houston Corporate and Securities practice group. An experienced legal advisor and inactive Certified Public Accountant (CPA), he advises clients on various legal matters, including tax, mergers and acquisitions, financings, and management equity incentives. John’s practice experience involves counsel for closely held companies and their owners within the fields of manufacturing, services and distribution, aviation, and real estate, as well as tax counsel for oil and gas sector transactions. He is a member of the State Bar of Texas, the Awty International School of Houston’s Board of Trustees, the Houston Yacht Club, and the Houston Livestock Show and Rodeo’s Legal Affairs Committee. John also authored “C Corp., S Corp., or Partnership?” and is a frequent speaker on business and tax affairs.