The Tax Cuts and Jobs Act (H.R. I; the Act) provides for major changes to business tax law. Most of the changes are effective January 1, 2018. The majority of the business provisions do not expire.
The following are a few changes that may save you significant tax dollars this year and in future years:
- C-corporations: Are now subject to a flat tax of 21% and the special tax rate for personal service corporations is eliminated.
- Small business deduction: Probably the most revolutionary addition to the tax law is the new deduction for qualified business income from “pass-through entities,” which also applies to sole proprietorships and rental properties. This provision can provide a deduction of up to 20% of your net “qualified business income”. This new law is too complicated to […]