Changes To Small Business Taxes

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Changes To Small Business Taxes
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• Changes to tax legislation mean that small
  businesses the world over are getting a break on
  their taxes, and the legislation is one of the
  most significant tax overhauls passed in decades.
  Its responsible for providing pass-through
  businesses and corporate entities with lower tax
  rates.
• Here are some of the biggest changes to small
  business taxes
• Deductions for pass-throughs and corporations
• A pass-through business is defined as being a
  small business that is structured as an
  S-Corporation, limited liability company, sole
  proprietorship or partnership,

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• and they make up about 95 of U.S. businesses.
  The new bill that has been passed gives a 20
  deduction for these businesses, with the only
  limitation being upon service-based businesses
  such as law and accounting firms who make more
  than 315,000 per year.
• There are also deductions for C-Corporations,
  with the new legislation lowering the tax rate
  from 35 to 21.
• First year bonus depreciation
• This deduction is increasing from 50 to 100, and
  enables businesses making eligible equipment and
  property purchases able to deduct the full amount
  of the

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• purchase, rather than writing off a portion of
  the expense every year. This should then give
  businesses more money to work with up front,
  giving them an incentive to invest it back into
  the business or use it to hire employees.
• Net operating loss changes
• NOL is no longer permitted to be carried back for
  two years and can now be applied for an
  indefinite amount of time. Net operating losses
  can happen when a businesss tax deductions are
  larger than its taxable income, and it functions
  as a form of tax relief for businesses, enabling
  owners to apply a NOL to future tax payments.

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• The changes to this have eliminated the ability
  for businesses to restructure taxes that were
  completed historically and extends net operating
  losses life span indefinitely. This can only be
  applied to 80 of taxable income.
• Elimination of transportation fringe benefits
• These may be minor changes, but are significant
  nonetheless. Transportation fringe benefits and
  entertainment expense deductions, which both take
  the form of tax-free employee commuter plans and
  reduced-rate entertainment plans, can still be
  given by employers, but they can no longer be
  written off as business expenses.

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• For more detailed advice and guidance about
  changes to the tax law for you and your small
  business, talk to your preferred tax professional
  and make sure that you are compliant with every
  new law.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.