Small businesses can reduce their tax bills significantly. Huge Opportunities if planned properly!
The new tax law which begins January 1, 2018, includes many opportunities and significant benefits for small businesses. The law fundamentally changes many of the tax planning ideas and techniques we have used for years and substitutes new ones in their place. Whatever you used to think your tax liability would need to be re-thought.
The law is complicated, though, with many factors that could alter your tax bill substantially.
To make the most of this opportunity, restaurant and bar owners will need to project their earnings at least one year in advance.
The new 20% deduction created under this law for small business is a powerful tool for tax planning. But must be considered in the context of the new depreciation rules and earnings thresholds. In addition, there are limitations and criteria which could reduce or eliminate the benefits.
In this new world, computer simulations projecting your income at least one year in advance is the only way to plan properly. If done right can save you thousands.
The good news is Kallas Company is ahead of the curve. We will have the capabilities to provide these simulations for you. We will have more information for you in the next newsletter as well as how you should proceed.