Let’s Take a Closer Look at New Business Tax Reforms The Tax Cuts and Jobs Act (TCJA) provides businesses with more than just lower income tax rates and other provisions you may have heard about. Here's an overview of some lesser-known, business-friendly changes under the new law, along with a few changes that could affect some businesses adversely.

DS+B Team May 4, 2018

Good News

Many of the new law’s provisions will reduce the amount of taxes your business will owe, starting in 2018. Here are four examples that you might not be familiar with:

1. Faster Depreciation for Certain Real Property
2. Faster Depreciation for New Farming Machinery and Equipment
3. New Credit for Employer-Paid Family and Medical Leave
4. Accounting Change for Long-Term Construction Contracts

Bad News

The tax breaks provided by the TCJA will cost the federal government a significant amount of revenue. As a result, the bill needed to raise revenue through other tax law changes. Here are two examples:

1. Less Favorable Treatment of Carried Interests
2. Self-Created Intangible Assets No Longer Treated as Capital Assets

Need Help?

If you’re feeling overwhelmed by the new tax law, you’re not alone. The TCJA is expected to have far-reaching effects on business taxpayers. Contact your tax advisor to review the substance of the bill and how your company can manage the impact.