Tax Reform 2018: New Tax Law Changes to Consider

Tax Reform 2018:  New Tax Law Changes to Consider

 

The passage of tax reform in 2017 (Tax Cut and Jobs Act) made significant changes in the tax rules for individuals and businesses. Most of the changes are now in place for the 2018 tax filings. CPMA’s accounting firm - Gilbert Associate, Inc. has put together information on many of these important changes for CPMA members. Click here to download Tax Reform 2018: New Tax Laws to Consider.  

Additionally, the Internal Revenue Service (IRS) is urging small business owners to learn about how the new tax law changes may affect them. Among other things, the new law may change business and individual tax rates and have an impact on the quarterly estimated tax payments businesses and individuals are required to make during the year. For many pass-through businesses, the law changes created a new 20% deduction for qualified business income. Other deductions and credits have been changed as well, including revised depreciation methods and expanded options for expensing business property. There also are new rules for like-kind exchanges and fringe benefits.

In addition, small business employers who provide paid family and medical leave to their employees during tax years 2018 and 2019 may qualify for a new business credit. Business owners can refer https://www.irs.gov/newsroom/businessesto the Tax Reform Provisions that Affect Businesses page at www.irs.gov/newsroom/businesses  for updates and resources on these topics and other business-related changes.

The IRS is highlighting these changes and more as part of its ongoing initiative to help small businesses and self-employed individuals understand and meet their tax responsibilities. Pass-through businesses, small C-Corporations, Schedule C filers (independent contractors and gig economy workers) and farmers are all affected by the new law.

The IRS has issued a number of news releases, tax tips, YouTube videos and webinars to help small businesses navigate the new tax law, and more of these products are on the way. Tax tips are written in plain language and people can subscribe to the tips by using the IRS Tax Tips email-subscription program at https://www.irs.gov/newsroom/subscribe-to-irs-tax-tips

 A variety of additional products and resources can be found on the IRS Tax Reform Resources page at https://www.irs.gov/newsroom/tax-reform-resourcesThe IRS encourages business owners to check its Tax Reform homepage at https://www.irs.gov/tax-reformfor the latest guidance on the tax law provisions that may affect them.

 (CalChamber Alert 10/19/2018)