Saturday, May 28, 2022

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How does the new tax law help my business?



Undeniably, businesses and business owners were the big winners under the new tax law. For large C corporations, the highest corporate tax rate dropped from 35% down to 21%. All businesses can deduct 100% of the purchase price of equipment or assets and heavy vehicles in the first year. For lighter weight vehicles, businesses can deduct up to $18,000 in year one.

Small business owners were winners as well. Business owners of partnerships, S corporations, LLCs, sole proprietorships, certain farming and rental activities now only have to pay income taxes on 80% of the net business income if household income is less than $315,000 for married filing jointly or $ 157,500 single. There are some limitations that apply when household income exceeds these amounts. Please consult with your tax advisor for how the new tax law applies to your business.

2600 Westown Pkwy. #380, WDM

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