Page 25 - South Mississippi Living - January, 2019

PAGE
REWRITING THE
TAX RULES
FOR BUSINESS story and photo courtesy Dan Burton, Owner Burton C.P.A.
In December 2017, Congress made sweeping changes to the business
tax rules which have been viewed as much more radical than the landmark 1986 tax reform bill. Let’s look at some critical points that you should consider.
• If you are structured as a C corporation, you have been blessed with a flat tax of 21 percent. If your net taxable income is over $50,000, this new tax rate will generate some positive savings.
• The biggest change associated with the new tax law relates to what
has been called a “pass through deduction” which is available to certain types of business owners. Determining if you are eligible for this deduction is somewhat easy
if your taxable income is less than $157,500 for single and $ 315,000 for joint filers. If so, you will qualify for the 20 percent deduction and
not have to jump through a lot of hoops. If your taxable income is in excess of these levels, you should schedule an appointment with your tax preparer as you may still qualify for the deduction under certain circumstances.
• All entertainment and meals expenses related to Saints games and
other sporting events will no longer
be deductible in 2018.
• Meals with clients and prospects
may not be deductible starting in 2018. In the past you could deduct 50 percent of the meals expense. Check with your tax preparer to see what documentation you will need to retain in order to claim this
deduction.
• There are significant
changes in depreciation rules that you will need to review with your tax preparer.
Overall, the new tax law should provide some very good opportunities for businesses that are willing to
take the necessary time to map out a favorable tax plan.
For more expert advice watch “Expert Talk” Mondays on News 25 Today on WXXV FOX & NBC 25 and News 25 at Noon on NBC 25.
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January 2019 • SOUTH MISSISSIPPI Living 25