The new “The Tax Cuts and Jobs Act of 2017 (TCJA)” is offering a potential huge tax savings benefit for many small business owners, however it is important that you understand you have to qualify for this deduction. One of the requirements is that you have to be a “pass-through entity” which includes an S-Corporation, Partnership, Sole-Proprietor or if you own rental properties. There is also a major requirement that is not publicized at all and that is you may need to be taking a paycheck from that business and how much you take on that paycheck DOES matter. It is always touted that tax reform is going to simplify taxes but this is not true for business owners! Please make sure that you do some tax planning before December 15th to make sure that you are receiving all of the tax benefits available!
If you know a business owner please pass this on!
If you have any questions please feel free to call us at 651-738-0813.
Have a fabulous day!
