Your tax returns were just completed, and now you have to start thinking about 2018 (if you haven’t already). With the new tax legislation, it’s best to meet with your accountant in May or June at the latest. Since they just finished the 2017 season, it is a good idea to give him or her a few weeks of R&R before asking for an appointment.
When you do meet with them, even if not until June, you will most likely still have time to make any necessary adjustments. Based on articles written since the new legislation was signed by President Trump, it appears the majority of small business owners – including home inventory professionals – will benefit from the changes.
An article in Business News Daily is quite informative, so we have summarized a few key items. For the entire article, click on this link to learn more about small business taxes.
- Deductions. The new bill provides a 20 percent deduction for pass-through businesses.
- First-year bonus depreciation. This deduction is going from 50 to 100 percent. This means that businesses purchasing eligible equipment can deduct the full amount of the purchase, instead of writing off a portion of the expense each year (depreciating it).
This article also included some helpful tips regarding taxes:
- Consult with a CPA. A tax professional can ensure your business is taking advantage of all the deductions available and also make sure you’re paying everything you owe.
- Think about taxes all year long. Small business owners should not treat income taxes as a once-a-year event. Waiting until the last minute makes tax preparation more complicated, and it might limit money-saving options.
- Don’t make assumptions. Tax planning, to some extent, is a gamble. Never make business decisions assuming that particular tax breaks will pass, or that certain policies will be enacted.