The Tax Cuts and Jobs Act (TCJA) introduces the following items that can impact the small business owner’s return:
- The standard deduction for all taxpayers has increased.
- The larger standard deduction will allow the small business owner to spend less time itemizing their individual deductions and more time running their business.
- The tax rates in several brackets has decreased by an average of 2%
- The introduction of the Qualified Business Income deduction allows certain taxpayers to deduct 20% of the business income on their individual tax return. The QBI qualifications are:
- Depreciation benefits have been increased dramatically.