Trump’s new tax plan is very confusing for the masses, but small business owners must learn about changes in deductions. This is important information that will certainly affect daily decisions in the 2018 tax year people.
I took the time to read the long Tax Cuts and Jobs Act a couple of times and can now highlight five changes in business automobiles,
mortgage interest, alimony, medical expenses as well as meals and entertainment rainmeter theme.
Most Americans could receive some tax breaks, with business owners being the greatest beneficiaries. Corporations will enjoy a 14% tax cut while real estate investors and small business will get a 20% pass-through deduction eavesdropping volume dubbing.
Here are those changes in deductions
1. Business automobiles
The tax changes have increased deductions for depreciation of cars used in business weblogic 8 다운로드. This will encourage more people to buy automobiles for their business instead of leasing. You can take an $18,000 deduction for a new car in the first year of owning it 또 오해영 다운로드. Trucks and SUVs for businesses are 100% deductible.
2. Mortgage interest
The rules don’t change on an existing mortgage, but the new tax changes have eliminated deductions for interest on home equity lines of credit mobile codec. New home buyers will enjoy some deductions, but it isn’t much if the house is over $750,000. Anyone with both state income and a house will be affected by this plan as the combined deduction limit is $10,000 Get Smart Download.
For the real estate sector, the reduction in deductions makes it less desirable to buy a house. It makes it better to be an investor rather than living in the house you own hp computer driver.
3. Alimony
This is the only bill that will take effect in 2018. Alimony is deductible but only for those who get divorced in 2018 삼성 노트북 윈도우 7 다운로드. Before this bill, alimony was deductible for the person paying and taxable for the recipient. To keep enjoying this, all proceedings must be finalized by the end of the year, but those who will be getting paid will want to delay the proceedings to the next year 인스타그램 프레임 다운로드.
4. Medical expenses
In 2017 and 2018, medical expenses exceeding 7.5% of your adjusted gross income will be deductible. The threshold will increase to 10% of AGI in 2019.
5. Meals and Entertainment
Business owners can still deduct their meals, but that is no longer possible for entertainment. Now many companies will insist that
employees only take clients for meals and not entertainment in order to deduct.
Small business owners are better off talking to a tax advisor who has grasped the new changes to help them understand the deductibles for their situation. This helps in knowing what changes are needed in the business, daily record keeping and investments. It may be difficult to understand the changes but one thing is clear, with Trump’s new tax plan, your actions will certainly make a difference in how much money remains in your coffers.