Plain and Simple: Bright Business Insights Winter 2018 | Page 2

TAX CUTS AND JOBS ACT
What’s Staying, What’s Going, and What’s Getting A Facelift
The Tax Cuts and Jobs Act (TCJA) was signed into law on Dec. 22,
and 35 percent, which were dependent on the amount of taxable
2017. These 1,000+ pages of legislation will impact all aspects of our
tax code. The following is just a taste of what’s to come, and the impact
income a business had.
•
Deduction. Since 2004, this provision had provided a tax
it will have on your business and personal bank account.
deduction for owners of technology development, construction
Good News for Business Owners
and manufacturing businesses. This deduction is no longer
Generally speaking, the TCJA promises to usher in a plethora of
changes for businesses. Including:
•
allowed in 2018 (2019 for C corporations).
•
percent. This is a drastic change from the old rates of 15, 25, 34
The elimination of the corporate alternative minimum tax.
Under prior law, the AMT rate of 20 percent was imposed on
The reduction of corporate tax rates. One of the most significant
provisions of the TCJA cuts the corporate tax rate to a flat 21
The elimination of the Domestic Production Activities
certain corporations. Exceptions did apply.
•
New fringe benefit rules. The TCJA eliminates the 50 percent
deduction
for
business-related
entertainment
expenses.