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Talk to Your Tax Practitioner About Tax Reform Opportunities

September 4, 2018 by OSYB Staff

Accounting Today shares 5 top tax reform planning opportunities to consider for your small business:

  1.   Should you structure or restructure your business to a C corporation as they are taxed at a flat 21%?
  2.   Should you acquire assets because you can expense as much as $1 million which is up from $510,000 in 2017?
  3.   Should you reassess your accounting method to incorporate the expansion of the cash method which states that, “Any entity (other than a tax shelter) with three-year average annual gross receipts of $25 million or less can use the cash method regardless of whether the purchase, production, or sale of merchandise is an income-producing factor”?
  4.   Should you consider qualified equity grants?
  5.   Be conscious of the new business interest expense limit in 2018.  “Net interest expense in excess of 30 percent of a business’ adjusted taxable income will be disallowed. However, a business won’t be subject to this rule if its average annual gross receipts for the prior three years are $25 million or less.”

As with any financial considerations, please consult your qualified tax professional.

For detailed information:  5 top tax reform opportunities for businesses

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