New Tax Year- New Tax Law, Small Business Owners Need to Know

small business tax law

What are some ideas to implement in this climate if uncertainty? Here are five tried and true suggestions.

 

 

Typically, small business owners spend the last two months of the year huddled with their financial team and CPA, trying to hatch up some last minute ideas for saving themselves a few dollars on taxes.

While this year is no different, we have added complicating factors dealing with potentially a new tax law.

How does one make the right decision?

With 40 years of tax planning experience, and having lived through the Tax Reform Act of 1986, I have a few observations.

First, don’t rush to judgment or overreact.

Early signals from the House and Senate suggests the Republican led Congress is struggling between the concept of real tax reform and simply creating some minor changes that can  provide an appearance of reform.

With the Christmas vacation coming, and the recent gubernatorial losses for Republicans in Virginia and New Jersey, the Republican party has concerns  the bill that does not further erode their current majority. 

A second point deals with the deductibility of state  and local taxes.

If lost, this could infuriate larger populations in high tax states like New York, California and New Jersey. 

My prediction is that no significant reform will be achieved before December 31, 2017. However in the unlikely event that a bill does make it through both houses  by Christmas, any major tax reduction provisions won’t be implemented till 2018, 2019 or even later.

What are some ideas to implement in this climate of uncertainty?

I have five tried and true suggestions: 

Do a rough tax projection for 2017, and determine what you will likely owe for April 15th 2018. With that in mind, start finding sensible expenses and deductions to pay. 

1.   Buy Equipment for your business

If you want or need some equipment, buy it and make it operational before December 31.

That way, you can probably expense it all under the Section 179 tax expensing rule. While the new law will likely keep the expensing provisions in place, buy what you need now and get the write-off now, while tax brackets are as high as they are, But remember, only buy what you need.

2.   Charitable giving. 

Don’t forget charitable giving. Whether its cash or simply cleaning out your closet of old clothes for the Goodwill or other charity you prefer, do it before December 31. 

Make sure you document what you are giving away, with the thrift store values, the quantities and condition clearly spelled out according to IRS guidelines.

Next page-  Ideas #3 through #5 to implement in this climate if uncertainty.

RELATED POSTS

Your Brand Is Not What You Think It Is…

Your Brand Is Not What You Think It Is…

Let’s talk about FEELINGS... If you look at today’s marketing and business headlines, there is a lot of chatter about BIG data and AI - it’s everywhere. This compelled me to recently tweet the following “It’s all about BIG data these days but we must never forget the...

Go From Mundane to Marvelous: Cultivating Joy in Your Job

Go From Mundane to Marvelous: Cultivating Joy in Your Job

Everyone is realizing that doing something they love for a living is becoming a necessity for their soul. When I graduated from high school, I wanted to become a psychologist, but I had to put my dream on hold and start working full-time to pay for college. I applied...

Gratitude- 5 Steps To A Sincere “Thank You”

Gratitude- 5 Steps To A Sincere “Thank You”

Gratitude can improve your business and add much, much more to your life. The simple act of saying "Thank you" typically conveys a sense of gratitude. But it must be genuine to be truly effective. And a dynamic "Thank you" is much more effective than a static one. So,...

Video Gallery

Polls

Sign Up for the Latin Biz Today Newsletter

PR Newswire

Featured Authors

avatar for Antonio PegueroAntonio Peguero

Antonio Peguero, Jr. is Counsel to Rivera &...

Ramp Up Business With U.S.-Latin America Trade

Innovation & Strategy

Money

Talent/HR

Legal

Marketing

Mi Mamá Es Una Brava

Mi Mamá Es Una Brava

She was fierce, unapologetic, unselfish and brava. Editor's note: This is a reprise piece from Gaby Alcantara Diaz remembering her late parents and brother.   Over 21.2 million (all) immigrant women reside in the United States since 2013 with many traveling by foot,...

Culture

Mi Mamá Es Una Brava

Mi Mamá Es Una Brava

She was fierce, unapologetic, unselfish and brava. Editor's note: This is a reprise piece from Gaby Alcantara Diaz remembering her late parents and brother.   Over 21.2 million (all) immigrant women reside in the United States since 2013 with many traveling by foot,...

Fashion

Food

Music

Sports

Chiefs Repeat, Closer to (but Not yet), a Dynasty [Video]

Chiefs Repeat, Closer to (but Not yet), a Dynasty [Video]

A 360 recap of Super Bowl LVIII Latin Biz Today advisory board member & Sports lead and two of his sports management students weigh in on Super Bowl LVIII The Aftermath  It’s hard to put into words why anybody would be shooting at a Super Bowl parade and killing...

Work & Life

Mindfulness

Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest