Law360: Beer, Wine, Alcohol And Taxes: A Most Excellent Recipe
In an article published on Friday, July 13, Edward Brown and James McCarten discuss the continued rise in alcohol sales by revenue, despite general consumption remaining the same, due to a noticeable shift in recent years to premium and above-market products in all segments, including craft beers. Limitations on alcohol production and consumption have relaxed, resulting in more than 70 percent growth in the number of Georgia breweries and pubs in the last two years. With these favorable conditions as well as the tax breaks and changes to federal excise tax due dates provided by the Tax Cuts and Jobs Act (TCJA), brewers of beer, distillers of spirits and vintners received a much-needed financial break last year. Brown and McCarten explain "The brewers of beer, distillers of spirits and vintners were, on the whole, treated favorably by the TCJA. However, it is uncertain whether the benefit of reduced income tax rates on distributors will eventually outweigh the loss of like-kind exchange treatment on the transfer of distributorships." Brown and McCarten advise industry members to consult with their tax advisers to ensure that they properly understand the impact of the changes. "The applicability of those new laws to the circumstances of a specific taxpayer must be reviewed against the facts apropos to that company's structure, the tax attributes of its owners and other taxpayer facts."
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