Business publications are begging small companies to work with tax professionals this year. Even though many deductions and credits have disappeared, new options abound.
Small Business Tax Tips: Top Three Deductions That Went Away Under the New Tax Code
Let’s look at the eliminated tax deductions and credits that will likely affect small businesses.
- Employers can no longer deduct transportation subsidies. Similarly, workers can no longer subtract the cost of tools, uniforms, or subscriptions to work-related publications.
- Work-related entertainment deductions are out. Golf rounds, court-side seats, and concert tickets are also off the deduction menu. However, you can still write off half the amount of business meals, just be sure to gather receipts.
- Changes in interest calculations are also causing headaches for some small businesses. Previously, you could deduct paid interest associated with loans and credit lines. Moving forward, businesses that generate less than $25 million can continue, but those making more can only deduct 30 percent. Exceptions, however, exist. For example, there are different rules for car dealers and other industries. Additionally, certain “carry back” techniques also landed on the cutting room floor.
The best way to figure out your best tax positioning under the new rules is to consult with a small business tax attorney.
Small Business Tax Tips 2019: Other Options Are Available
Confronting a slew of lost deductions is daunting. But don’t worry; you have other options. For example, the new 20 percent income reduction for many sole proprietors, corporations, and partnerships could prove to be a huge boon. Additionally, the new opportunity zone program may be the perfect program for traditional investors and crypto holders in search of government-approved tax shelters.
Connect with a Small Business Tax Lawyer in Chicago, Illinois
Taxes can be stressful — and we’re here to alleviate the pain. Our team of Illinois tax law attorneys prides itself on helping clients pay less tax and leverage available deductions and credits to best position themselves for the future. Whether you’re a family or a large corporation, we have the tips and know-how you need to get the most out of the new tax code.
This year, it makes the most sense to work with a tax professional. Get in touch today to begin the conversation.