The Tax Cuts and Jobs Act could change the way you do your 2018 taxes. Moskowitz LLP, a San Francisco tax law firm, has the following tips for the 2018 tax season:
Under the new law, the tax deductibility of business meals is limited more strictly, and entertainment costs can’t be deducted. Some company recreational and social activities such as holiday, birthday and anniversary parties remain deductible.
Owners of qualifying S-corporations, limited liability companies, sole proprietorships and partnerships, can now deduct up to 20 percent of qualified business income on their taxes. Your amount of qualifying business income varies.
Should you convert between a “C” and “S” corporation? A tax attorney could tell you if there are any monetary benefits to restructuring your business.
If you bought equipment after Sept. 27, 2017, you may qualify for a 100 percent write-off of that item’s value in the year of purchase.