On December 22, 2017, President Donald Trump signed into law a tax bill that was passed by the U.S. House and the Senate earlier in the week. The bill, commonly referred to as the “Tax Cuts and Jobs Act of 2017” is being called the biggest tax reform since the 1980s, which will affect individuals, businesses and estates.
While your Dayton Area Chamber of Commerce is not a tax expert, several of our member businesses are. In order to give you an idea of the impact the tax reform might have on your business, we’ve gathered tips from a few of those members, including Brixey & Meyer, Clark Schaefer Hackett, and Flagel Huber Flagel. Please consult your business’s accounting firm for more detailed advice. If you don’t have an accountant, please refer to these chamber members.
Overall, according to our member accountants, the bill significantly reduces the income tax rate for corporations and eliminates the corporate alternative minimum tax (AMT). Here’s a look at just 5 ways the bill will affect business:
The corporate tax rate, which previously ranged from 15% to 35%, will now be a flat rate of 21%.
Most provisions go into effect January 1, 2018 and expire December 31, 2025. Please consult your accountant to find out how the tax reformation will affect your business.