The recently passed Tax Cuts and Jobs Bill is going to affect everyone, from individual taxpayers to business owners. Will the new tax law bring benefits? Where can you get secure and affordable business funding? Just read this article and you’ll know.
New Tax Law: Need Business Funding for Your Company?
President Donald Trump signed the American Tax Cuts and Jobs Act in December. According to Republicans, the tax law would result in economic growth. Democrats think it favors large corporations and wealthy individuals, which can’t be said about small businesses and individuals with lower income.
6 months ago, President Trump said that his sweeping tax reform would “bring back Main Street” by cutting down taxes on small businesses. The bill is associated with some of the most drastic changes made to personal and business income taxes in decades.
Rob Hassett, an attorney at Business Law Partners, notes that small businesses will almost all witness a tax decrease, at least this year. Hassett says this is a change that could strengthen congressional Republicans going into the 2018 midterms.
According to Brad Close, a senior vice president for public policy at the National Federation of Independent Businesses (NFIB), small businesses will have more savings and more money. The NFIB is an association that advocates for small businesses.
Greg Brown, a warehouse supplier, has a lot of hope that things will get better.
According to Businesses for Responsible Tax Reform, a coalition of business leaders calling for tax reform that truly benefits America’s small business owners, has held a survey. The survey results show that a majority of SMBs don’t believe the tax reform will bring benefits for their business and help them grow.
Based on the recent CNBC and SurveyMonkey analysis, 1/3 of Americans hope that the tax breaks will be used by SMBs to boost payroll. Small businesses mentioned paying down debt and investing in equipment and equipment repairs as their main steps aimed at making use of tax breaks.
With all this in mind, it’s too important to work with a reliable and experienced business funding provider if you are interested in growing your business. A reputable alternative online lender can help you obtain the necessary business funding fast and easily. With the true professional in the field, you can enjoy the most competitive rates and the best terms for your business.
Top Changes Affecting Small Businesses
What are the top changes that impacting small businesses?
- Meals and entertainment for business purposes aren’t deductible, no matter who pays. There’ an exception concerning employers hosting holiday parties and other events of this type at the workplace for their employees. Deductions still exist for meals and drinks bought during bonafide business travels.
- Business taxpayers planning to invest in new equipment can deduct 100{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} of eligible business assets through 2022. After 2022, bonus depreciation gets reduced 20{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} with each year until accounting for 20{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} in 2026.
- Pass-through entities get 20{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} deductions. Nearly 95{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} of American businesses, both large and small, are pass-through entities. These include sole proprietorships, S corporations, partnerships, and any LLCs taxed as one of them. 20{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} deduction cuts taxable profits but won’t affect the amount of self-employment tax owners of pass-through entities will owe.
- The maximum corporate tax rate is 21{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f}. Taxpayers (surpassing the income threshold for the 20{c4d976c6d7323d399b11046b361722ee07be3129afaeb59624aa397adea1d60f} pass-through deduction) who want to reduce self-employment taxes may enjoy benefits if they relaunch as a C corporation. This way, they’ll take advantage of the new lower-tax rate for C corporations and personal service corporations. The tax bill is making it easier to convert a pass-through entity to C corporation on account of these changes.
The IRS will issue new rulings and interpretations of the Tax Cuts and Jobs Act this year. Updates will be made in 2019.
Author Bio: Business Funding expert, Michael Hollis prides himself on being able to help the backbone of America; small business owners. When he isn’t helping merchants, you’re more than likely to find him scuba diving the California coast or eating at one of LA’s tasty Vegan restaurants.