The “Tax Cuts and Job Act” is the largest tax reform to take place since 1986, and it will bring significant changes for U.S. business owners. The President will likely sign the bill in January, giving us a couple months to work out the details and determine exactly how it will impact our clients.

Two major changes to make note of:

  • The corporate tax rate will be lowered from 35% to 21%
  • There will be a 20% deduction on qualified income from pass-through businesses such as an LLC.

These new competitive rates will allow business owners more expendable income, as well as give them a reason to keep their investments in America. Although the bill is still progressing, it’s pro-growth stance will lower taxes for most people and give the economy a long-awaited kick-start.

As Congress works through the difficulties of reforming the tax code, we will be keeping track of the provisions designed to help business owners. Smith Barid will be here every step of the way to update our clients and help take advantage of the new reform. Stay posted.