You may already be aware of the new 21% tax rate for corporations, but did you know other elements of the new law may significantly impact your business and provide key planning opportunities? We’ve outlined a few of these elements below.
- 2018 and future Net Operating Losses (NOLs) have been limited to 80% of current year taxable income.
- The new law eliminates NOL carrybacks with few exceptions and allows an indefinite carryforward.
- Businesses with receipts in excess of $25 million may have a limited interest expense deduction.
- The Domestic Production Activities Deduction (DPAD) has been repealed.
- Most business entertainment expenses are no longer deductible
- Cash basis accounting for income taxes is now available to more taxpayers.
Your Warren Averett Advisor is ready to walk with you through these changes to provide insights and offer planning strategies so that your company can continue to thrive.