By Jamie Moore Marcario, Managing Attorney Thrive Law: a Business Law Boutique with Kathy Cregan, CEO Cregan and Co.
Although many progressives warned that No. 45’s tax plan would bring nothing but wailing and gnashing of teeth, the highly touted “business friendly” nature of the Republican tax bill allowed it to pass both the House and Senate, and many business owners are anxiously anticipating its effects. Known as the “Tax Cuts and Jobs Act,” the bill reduces tax rates, adjusts tax structures, and revamps tax benefits for businesses to stimulate economic growth.
No matter what your political leanings, the new tax bill includes certain elements of which prudent business owners should be aware when planning 2017’s year-end taxes and devising tax strategies for 2018. For example, as a business owner, the bill allows you to adopt tax-saving strategies like deferring income to 2018 or accelerating deductions into 2017 if your business’s marginal tax rate is likely to be lower in 2018. You can also do the exact opposite if the new bill means you’ll experience a tax rate increase or if certain tax deductions will be unavailable to you in the new year. Wicked or windfall? You be the judge.