Tax Reform and Small Business
We are currently experiencing an interesting time in the tax world. As of December 2, 2017, the Senate and House have approved their versions of the tax reform bill. The Senate and House have minor differences in each of their bills which means it cannot be signed by President Trump until both versions are identical. The two sides will meet to try to reconcile the differences by December 15, 2017.
Many business owners out there are probably wondering how the proposed bill(s) will affect their business. This bill will create some substantial tax differences for businesses of all sizes. Most notably, tax rates for corporations and pass-through entities will see significant reductions. Additionally, depreciating assets in full is allowed once a new asset is placed in service. Even though we do not have a signed bill in place, the below link shows a comparison between both bill drafts and the current tax law.
We will keep you posted on how the final bill comes out (if or when it happens). In the meantime, reach out to us at New Era CFO if you have any questions. We enjoy advising our clients on the uncertain future of US tax law.