How Tax Reform Will Affect You As A Business Owner

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How Tax Reform Will Affect You As A Business Owner
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• Many years have passed since there was last a tax
  reform - way back in the days of President
  Reagan, in fact and the new Tax Cuts and Jobs
  Bill that has recently been passed is bound to
  have an impact on all taxpayers, from individuals
  to business owners.
• If youre a business owner, then the following
  information may be of use and help you to
  understand what impact the tax reform will have
  on you
• What impact will tax reform have on me as a
  business owner?
• According to President Trump and his devoted
  administration, the new tax code

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• was initiated to provide benefits for those
  individuals within the middle classes, and
  business owners. If you own a small to medium
  sized business, the new tax rate of 21 for
  pass-through businesses such as C-corporations,
  partnerships and sole proprietorships, will
  probably have the greatest impact upon you. The
  term pass-through is used to refer to the
  expenses and revenue generated by organisations
  that get passed along to the owners personal tax
  returns at individual rates different to
  C-corporations that pay a lower rate of taxes.
• If your business has a large workforce, then you
  will find yourself being rewarded by the tax
  reform, which is designed to encourage other
  companies to take on more employees. It will
  depend on how your small business is classified,
  as to

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• whether it will benefit from the changes to tax
  codes whether it be S corporation or C - but
  its a good opportunity to progress with your
  small business and expand your workforce if
  possible.
• Tax reform for businesses that use a lot of
  equipment and property
• If the company that you own uses a large amount
  of equipment and property, then you should take
  note of the dollar limit for such purchases,
  which has increased markedly thanks to changes
  made to Section 179 of the tax code. In the past,
  a maximum deduction of 510,000 was offered,
  whereas with the current

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• changes to tax law, qualifying property placed in
  service in the tax year beginningin 2018, the
  most that can be deducted has been increased to
  1 million, while the phaseout threshold amount
  has gone up to 2.5 million. With respect to
  property, rather than the previous 50 bonus
  depreciation, it is now 100 for properties
  bought and put into service after the 27th
  September 2017. Looking forward to 2022, there
  are reductions planned to the deduction
  percentage that will eventually see it going down
  to zero, with exclusions that are applicable to
  some properties.

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• How can you find out more about the impact of tax
  reform?
• Knowing exactly how the changes to tax laws will
  affect you and your small business, is something
  that you should try to stay up to date with, and
  one of the best ways of doing this is by hiring a
  tax professional who will make it their job to
  keep you informed about all changes to tax codes
  and what impact they may have.
• A tax professional is always one of the most
  cost-effective ways of keeping track of your
  taxes, ensuring that you pay them correctly and
  on time, and preventing

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• you from incurring penalties because you didnt
  file by the deadline or failed to recognize the
  changes to tax laws.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.