Small Business For Dummies, 5th Edition

Chapter 23

Ten Ways the 2017 Tax Reform Bill Benefits Small Business

IN THIS CHAPTER

Understanding the reduced income tax rate on corporations

Figuring reduced taxes on pass-through entities — sole proprietorships, LLCs, partnerships, and S-corps

Expensing rule changes for equipment and autos

Understanding other changes for interest deductions, net operating losses, and health insurance

Corporate tax reform in the United States was long, long overdue. For many years, corporations in the U.S. faced a much higher corporate income tax rate than did companies based in most overseas economies. As a result, increasing numbers of U.S. companies had chosen to expand more overseas rather than in the U.S. and to be headquartered outside of the U.S., which wasn’t good for the long-term health of the U.S. economy and labor market.

The Tax Cuts and Jobs Act was passed by Congress in late 2017 and took effect with tax year 2018. It was the most significant tax reform package passed since the Tax Reform Act of 1986. This chapter highlights the ten most significant provisions that affect (and mostly ...