It is tax time. Your year end dedication in preparing to meet with your accountant has paid off and you are ready to file. The new tax law signed in late 2017 is now a reality. What do you need to know about it and do you understand it?
The CPA Practice Advisor website posted a great article on Jan 2, 2018. Tax Reform Law has Benefits for Some Small Businesses, By Ken Berry, J.D, details for us an outline of what this new law means for us.
The monumental new tax law signed late in 2017 – the Tax Cuts and Jobs Act (TCJA) – has been hailed as a boon for big business. But the TCJA also benefits many small businesses while presenting new obstacles. In general, the revised rules for businesses take effect in 2018 and are permanent, unlike most changes for individuals. Following are the key provisions likely to affect small businesses.
[This article focuses on the effects of the new tax reform law on businesses. For a look at how it impacts individual taxpayers, read this article.]
Mr. Berry concisely reviews some key sections of the new law and concludes with,
In particular, planning may focus on the new deduction for pass-through entities. These rules are so complex even tax experts are having trouble sorting through them, but some clients may be tempted to shift the form of business ownership or transfer ownership shares to other family members to cash in on this tax break.
Expect the IRS to issue guidance on the new deduction for pass-through entities and other aspects of the new tax law affecting small businesses. We will continue to update you on significant new developments.
Read the article in its entirety here.