March 28, 2018 – biztechmagazine.com
by Wylie Wong
Along with lowering rates on businesses, the Tax Cut and Jobs Act of 2017 increases the Section 179 deduction, which covers hardware and software purchases.
Now that companies have filed their 2017 taxes (or at least filed an extension), it’s a good time for small businesses to plan for the 2018 tax year and learn how they can benefit from the new tax law, from lower tax rates to much larger tax breaks for technology purchases.
President Donald Trump in late December signed into law the Tax Cut and Jobs Act of 2017, which includes many changes that could benefit businesses. C Corporations, which are typically large companies but include some small businesses, too, receive a huge tax cut as the federal corporate tax rate drops from 35 percent to 21 percent.
Small businesses that are pass-through entities – such as S Corps, LLCs and partnerships, which are the vast majority of small businesses – also benefit with a potential 20 percent deduction for qualified business income, but it’s subject to many exceptions, says Stacey Gorowitz, CPA and CEO of S.J. Gorowitz Accounting & Tax Services in Alpharetta, Ga.