By now you may have heard that 2017 ended with a new tax bill. The legislation involves several sizable shifts that could either benefit or harm small business owners. Below, we’ve compiled a list of resources to help you understand the changes you can expect once the new tax bill is fully adopted.
Kiplinger: Small Business Owners Win Big in New Tax Law With 20% Off Deal
While most resources focus on corporate tax rate, Kiplinger highlights an underappreciated aspect of the new tax bill: taxable income reductions for sole proprietors. The article also offers the perspective that the tax bill may prove beneficial for some small business owners. You will learn more about opportunities to take full advantage of the tax changes, such as increased small business expensing caps.
Inc.: The Tax Bill Is Final. Here’s What U.S. Businesses Need to Know
This overview from Inc. covers several critical elements of the bill in bullet point form, including several factors rarely discussed elsewhere. Chief topics include the scaling back of state and local income tax (SALT) deductions, changes in food and beverage deductions, reduced excise taxes for craft brewers, and developments in territorial tax structure.
Forbes: What Tax Reform Means for Small Businesses & Pass-Through Entities
This in-depth piece from Forbes begins with a much-needed overview of business structures, defining the unique qualities of proprietorships, partnerships, Limited Liability Companies, S Corporations, and C Corporations, and others. The article also explains qualified business income, qualified property, and other terms that you may encounter as you examine the new bill. Finally, a detailed guide helps you determine deductions based on your unique tax situation.
Rangefinder: What Does the New Tax Bill Mean for Your Photo Business?
It could be of help for you to view the new tax bill in the context of a specific industry. Rangefinder offers a valuable perspective for photographers, including specific figures to help business owners determine how much, exactly, they’ll owe in the future. The article includes two especially helpful example scenarios to clarify the bill’s impact: married taxpayers with sole proprietorships respectively earning $100,000 and $1 million in net income, with varying deductions and levels of spousal income.
Looking Ahead to 2018 Tax Season: 5 Ways to Hack the New Tax Law
USA Today encourages you to think ahead to sidestep potential pitfalls of the new tax bill. Suggestions include planning major medical treatments for 2018 to take advantage of the changed medical expense deduction, and updating withholding allowances to account for eliminated personal exemptions.
Like it or not, changes are coming for your federal and state taxes. The better you understand the new tax bill, the easier you’ll find it to reduce your burden. From changes in business structure to new deductions, the right tweaks could save your business thousands or more on your tax bill.