2018 Tax Reform-Business Tax Changes
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 […]
The Court of Appeals for the Ninth Circuit in California, reversing a California District Court, has held that FedEx drivers in California are employees, not independent contractors under California’s “right to control” test. The tests used to evaluate whether a worker is an employee or independent contractor are generally comprised of 10 factors. One of the principal tests is whether the person/company to whom the service is rendered has the right to control the manner and means of accomplishing the result desired. If the person/company to whom the service is rendered to has the right to control, then it will most likely be an employee relationship rather than an independent contractor relationship. The Court of Appeals found that FedEx had the right […]