Author: Nick Juliano, Founder/CEO of NJ Tax Advisers and Accountants
Tax laws are constantly evolving, and staying informed about these changes is crucial for your business. Recent tax law changes can have significant impacts on your operations, financial planning, and tax liabilities. Here’s what you need to know.
Key Changes in Tax Laws
Corporate Tax Rates:
Recent reforms have adjusted corporate tax rates, potentially lowering the tax burden for many businesses.
Deduction Limitations:
Changes in the limitations for certain deductions, such as interest and business meals, may affect your tax strategy.
Qualified Business Income Deduction:
Adjustments to the Qualified Business Income (QBI) deduction could impact how pass-through entities like S-Corps and LLCs are taxed.
Employee Retention Credit:
Updates to the Employee Retention Credit provide additional support for businesses retaining employees during economic challenges.
Adapting to Tax Law Changes
Review Your Business Structure:
Evaluate whether your current business structure is still the most tax-efficient in light of recent changes.
Update Your Tax Strategy:
Work with a tax adviser to update your strategy and ensure compliance with new regulations.
Maximize New Opportunities:
Take advantage of new deductions, credits, and incentives introduced by recent tax reforms.
Real-World Impacts
One of our clients, a manufacturing firm, was able to significantly reduce their tax burden by reevaluating their business structure and leveraging the updated QBI deduction. These changes not only improved their cash flow but also provided additional funds for expansion.
Conclusion
Navigating tax law changes can be complex, but with the right guidance, you can adapt and thrive. At NJ Tax Advisers and Accountants, we stay up-to-date with all tax law changes to provide you with the best advice and strategies. Contact us today to learn how recent tax law changes affect your business and how we can help you optimize your tax plan.
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