The Internal Revenue Service (IRS) recently announced new tax breaks for small businesses that will help them save money and stay competitive. The new tax breaks are part of the Tax Cuts and Jobs Act, which was signed into law in December 2017.
The new tax breaks are designed to help small businesses save money on taxes and make it easier for them to invest in their businesses. The new tax breaks include:
• A 20 percent deduction for qualified business income from pass-through entities, such as sole proprietorships, partnerships, and S corporations.
• A new deduction for qualified business income from sole proprietorships, partnerships, and S corporations.
• An increase in the Section 179 expensing limit from $500,000 to $1 million.
• An increase in the bonus depreciation rate from 50 percent to 100 percent.
• An increase in the limit on the amount of business interest that can be deducted from 30 percent to 50 percent.
• An increase in the limit on the amount of net operating losses that can be carried back from two years to five years.
• An increase in the limit on the amount of net operating losses that can be carried forward from 20 years to an indefinite period.
These new tax breaks are designed to help small businesses save money on taxes and make it easier for them to invest in their businesses. The new tax breaks are a welcome relief for small businesses, which often struggle to stay competitive in today’s economy.
The IRS has also announced that it will be providing additional guidance on the new tax breaks in the coming weeks. This guidance will help small businesses understand how to take advantage of the new tax breaks and ensure that they are in compliance with the new tax laws.
Small businesses should take advantage of the new tax breaks and use them to their advantage. The new tax breaks can help small businesses save money on taxes and make it easier for them to invest in their businesses.