Mike spoke about the new tax law going into effect this year.
The 20% reduction in the corporate rate also applies to the Partnerships, LLCs, and S-Corps
The definition of who is a “service provider” has changed. Professions such as accountants, lawyers, and doctors may not benefit from the rate reduction if earning more than $400,000. Between $100,000 and $400,000 the deduction is phased out.
The government shutdown has delayed the issuance of tax calculation rules that software companies use to update their software to the current law. It has also affected real estate & rental properties tax calculations. If you’ve gotten a notice of a penalty due to underpayment don’t pay it right away. It may be waived.
Give Mike a call for any questions about how the new law affects your business.