What Business Owners Need to Know
The biggest news to come from the tax law changes is the reduction of the corporate tax rate from 35 percent to 21 percent. The question is, do these changes apply to all businesses? No, they don't. But there are significant changes for businesses, regardless of structure.
While the C Corporation tax rate has been reduced to 21%, the Pass-Through entities are eligible for a qualified business income deduction. Beginning this tax year, S-Corporations, Partnerships, Trusts, Estates & Schedule C (Sole Proprietors), and Schedule E filers might be eligible to a deduction of up to 20 percent of their qualified business income.
All these rate deductions sound great, but there are major shockers in what businesses will be able to write off as expenses under the new law.
One example: entertainment expenses will no longer be deductible under this new law. So whether you are buying season football tickets for clients to watch your favorite team, or going to the opera, these benefits are no longer write-offs on your tax return.
We are keeping up-to-date with new regulations as they come in and as additional guidance is issued. We are including the new tax laws in all our tax planning.
The Tax Cuts and Jobs Act was passed with little guidance provided to the IRS and professionals on the rules for applying the new requirements. We are constantly researching and seeking additional guidance on the implementation and will provide you with updates as we learn more. We highly recommend you consult with us regarding your tax planning to learn how this Tax Cuts and Jobs Act affects you.
Call us at 727-398-2080 or email us: firstname.lastname@example.org and we would be happy to set up a Free half hour in office free consultation to discuss the new tax laws.