Tax Changes for 2018
Across the tax brackets we saw a percentage decrease but in order to get you got to give. So what did we give up? The new tax reform repeals a lot of credits and deductions for small business.
That’s right, no more courting future clients with events, golfing, and everything in between. Effective in 2018 those expenses are coming out of your company’s pocket. Big corporations have no problem picking up the tab for potentials but a small business just can’t compete. Many small businesses depend on that tax deduction in order to pick up new clients. At least the government is allowing you to keep your holiday party 100% tax deductible.
They are also allowing you to keep a 50 percent tax deduction on meals provided for the convenience of employer, client dining, and employee business meals. Unfortunately, this is still less than what we have seen from previous tax reform but hey at least they are letting you keep something right?
Wrong. Another deduction you will be loosing, as well as all of your employees, is mileage and parking. There is no longer a tax break for your employees spent miles. Which not only damages your refund but your relationships with your staff. There is one beacon of light though - you can write off those who bike to work.
Now that you have an idea of where your losing let us help you save. Let a Frisco Bookkeeping and Tax Services specialist answer your questions.