It’s tax time, everyone. If you own a small business you know what that means. It’s time to gather everything you’ve organized and take it to the experts at Pathways! While we love taking care of all your tax needs, we also love educating you on what’s going on with your taxes. For small businesses. The Tax Cuts and Jobs Act is upholding it’s promise to reform the way we handle taxes.
For small businesses specifically, this bill enacts a multitude of things like cutting the corporate tax rate, and strengthens 179 deductions. But what else does it do?
If your business is considered an S corporation, a sole proprietor, or partnership, your income tax will be lowered by 20% with the new reducing of pass-through taxes.
It gets rid of the AMT that used to be applied to businesses completely! (How exciting, right?).
This bill also reforms international taxation, making it to where the income is only taxed by the laws in the place they reside.
However, while this bill mostly has wonderful changes that are exciting, it also repeals the business entertainment deduction. Meaning, all those entertaining activities work provided with a 50% deduction no longer exist. At least they are still qualifying business related meals!
If you are a small business owner in the low country area, why not take your taxes to the experts here at Pathways Consulting? We will handle all your tax needs, so what are you waiting for?!
The Pathways Team