Let’s pick up where we left off in Part 2. In that post, we covered interest deductibility, provided a prioritized list of industries of where banks can make their largest impact based on profitability, and looked at how to advise companies with international operations. In this article, we wrap up the series by looking at how the new Tax Cut and Jobs Act of 2017 (TCJA) impacts net operating losses, tax impairments and different types of financing.
In Part 1, we discussed how the Tax Cut and Jobs Act of 2017 is the perfect medium to allow bankers to carry on a high quality, “Trusted Advisor” conversation with commercial clients. We covered how pricing will impact credit quality and loan pricing while highlighting the importance and method to have a conversation around deposits, balance timing, earnings and cash flow.