As a result of Tax Cut and Job Act (“2017 tax act”) there are sweeping changes to the tax code for the first time in about 30 years. Businesses should be aware of the provisions that have changed and plan accordingly.
Below are highlights of the 2017 tax act.
Corporations: The 2017 tax act provides for a 21% flat tax rate for C Corporations.
Alternative Minimum Tax: For C Corporation, alternative minimum tax is repealed.
Pass-through entities (S Corporation, Partnership, Sole Proprietorship) are subject to a 20% deduction for Qualified Business Income. Special rules apply in order to calculate the deduction.
Section 179 Expensing – Limitation increases from $1m to $2.5M
Research and Development Credit: Preserved
Entertainment Expenses Deductions: Generally no deduction is allowed for entertainment, amusement or recreation, membership dues for a club organized for business, pleasure, recreation or other social purpose
NOL deduction: Limited to 80% of taxpayers taxable income with the balance carried forward indefinitely
Depreciation: In light of changes to the depreciation rules, need to analyze the asset classification to accelerate deductions
BG handles all of my personal and business book keeping, accounting and tax returns. I've been using them for many years and they've been extremely professional and reliable with tax planning and also helping my business grow. Both Dave and Sachin are always available for questions and I've always felt very comfortable relying on them for solid professional advice.
Amazing! after 30 years with my old firm BG has my business completely turned around and it is a smooth running operation all online, the staff is completely accessible and handle not only all the accounting, and payroll but they also budget and forecast my business. BG recently integrated our 401k package and it could not have been easier.
BG Advisors CPA is a full service CPA firm committed to helping growing businesses reach their goals. Combining decades of diverse corporate, finance and tax experience allows us to bring world-class expertise to every client we serve.