Are you running an S corporation? Then you may be suffering from C corporation envy. Why? Because thanks to the 2018 Tax Cuts and Jobs Act, C corporations now only pay a flat 21% tax rate on corporate profits which looks pretty darn good. But remember, looks can be deceiving, and before you think about giving up on your S corporation, take a minute and read my new … [Read more...]
Tax Reform Allows 100% Deductions for Business-Meal Presentation Expenses
As I’ve explained recently in the Tax Reduction Letter, the new tax reform law has done serious damage to business-entertainment and meal-expenses deductions. Take a client or a prospect out to lunch or a show and you can forget about writing off the costs. But there is still some good news. If you make business presentations, related expenses can be deducted in … [Read more...]
Tax Reform Allows Bigger, Faster Business Car Deductions
If you bought a car in 2017 that cost over $15,800, Uncle Sam considered it to be a luxury car and put a lid on your depreciation. For example, if you bought a $40,000 vehicle and drove it 100% for business, your maximum depreciation deductions for the first five years would total just $15,060. And to fully depreciate the car would take nineteen years. Ridiculous! Well, … [Read more...]
Does Tax Reform Deny You the New 20% Tax Deduction?
The good news: Section 199A of the new tax law gives you a hefty 20% deduction on your qualified business income when you have defined taxable income of $157,500 or less (single taxpayer) or $315,000 or less (married filing a joint return). The bad news: If your defined taxable income is more than $207,500 (single taxpayer) or $415,000 (married filing a joint return) and … [Read more...]
Tax Reform: Wow, New 20 Percent Deduction for Business Income
Here’s some really good news and it’s a big deal… Section 199A of the new tax code lets you claim a deduction against your IRS 1040 taxable income of up to 20% of your qualified business income. Yes. These new rules can really put big money in your pocket. Which is why I urge you to read my new article titled Tax Tips: Tax Reform: Wow, New 20 Percent Deduction for Business … [Read more...]