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How tax reform affects your business bottom line

Posted on February 7, 2019

As you probably already know, the comprehensive tax reform bill known as the Tax Cuts and Jobs Act affects both personal and business taxes. There’s a lot of information out there about understanding personal taxes, but not as much available about how new business regulations will affect your business bottom line.

Here is some information from the Small Business CPAs at Teipen Selanders Poynter & Ayres to help provide a lay of the land prior to completing your business taxes. You can get a pretty fair picture of 2018s business taxes by utilizing the following IRS on-line resources.

The main IRS page for businesses is Tax Reform Small Business Initiative.
Intended as a one-stop shop, this source highlights lots of important tax reform topics for small businesses. Users can also link from this page out to more resources with additional information, organized in sections by topic, including:

  • Income: taxation of foreign income, carried interest, and like-kind exchanges
  • Deductions and depreciation: fringe benefits, moving expenses, standard mileage rates, deduction for passthrough businesses, and business interest expenses
  • Credits: employer credit for paid family and medical leave, and the rehabilitation tax credit
  • Taxes: blended federal income tax and withholding
  • Accounting method changes

From the IRS Tax reform resources page, users can link to FAQs, tax reform tax tips, revenue procedures, fact sheets, articles and news releases.

The CPAs at TSPA really like Tax Cuts and Jobs Act: A comparison for businesses,
a side-by-side comparison page to help businesses readily understand the changes the new law made to previous laws. Viewing this can help your business make decisions regarding deductions, depreciation, expensing, tax credits, and other tax items that affect businesses.

Tax reform: What’s new for your business 
This electronic publication covers many of the TCJA provisions that are important for small and medium-sized businesses, their owners, and tax professionals to understand, including:

  • Qualified business income deduction
  • Depreciation: Section 168 and 179 modifications
  • Business-related losses, exclusions and deductions
  • Business credits
  • Corporate tax provisions
  • S corporations
  • Farm provisions

If you aren’t sure where your business stands tax-wise, the best recourse for your business is talking to a reputable CPA that specializes in small to medium sized businesses, like our team here at TSPA. Let’s talk.