The Tax Cuts and Jobs Act (TCJA) of 2017 brought significant changes to small businesses. In particular, it has favored pass-through businesses taxed on individual income returns. This allowed pass-through business owners to deduct up to 20% of their qualified business income, which potentially reduced individual income taxes.
In addition, the significant increase in the deduction to $1 million in Section 179 of TCJA has helped businesses, including small ones, to immediately deduct qualifying asset costs, like machinery and Tax Preparation Services in Texas equipment. With lowered tax rates on both corporations and individuals, more small businesses have gained higher financial capacities.
However, TCJA, while advantageous, necessitates vigilance among small business owners as it also introduced complexity to tax filing. Here are some ways small business owners can simplify the process:
- Update financial records to streamline the filing process
- Seek assistance from experienced tax accounting firms in Texas
- Use reliable tax software to simplify tax return preparation
Staying informed about the effects of TCJA on your business and consulting with a qualified tax accountant who can provide accurate and efficient accounting and bookkeeping services in Texas ensures problem-free tax payments and maximizes savings. Remember, while it has profoundly reduced taxes and promoted growth among businesses, it’s undeniable that complex tax provisions require meticulous attention.
At KF Tax & Accounting, P.C., we provide accounting services in Round Rock, Texas, to those who require expert navigation and guidance in financial-related aspects of business. To learn further about our services, please contact us anytime.
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