Mountain Home, Arkansas
104 E. 1st St.
Mountain Home, AR 72653

How Will the Tax Cuts & Jobs Act Affect My Business When Filing a Tax Return? March 12, 2018

Mountain Home, Baxter
How Will the Tax Cuts & Jobs Act Affect My Business When Filing a Tax Return?, Mountain Home, Arkansas

As an Arkansas business owner, tax preparation is most likely on your mind this time of year. Many people are also concerned about newly implemented tax laws and how they will affect business tax returns. The Callen Accounting Group, PLLC in Mountain Home recommends getting acquainted with these changes to ensure you know what to expect when filing your taxes this year. Below, they discuss how a few different enterprises are impacted when filing their tax returns.

How Are Pass-Through Entities Affected?

The Tax Cuts and Jobs Act changed the way pass-through businesses are taxed. These entities are those where the owners use personal tax rates when paying taxes on business income. These include LLCs, partnerships, and S corporations.

tax returnAccording to new laws, most pass-through businesses will see a reduction of 20% on all taxable business income. Most businesses are considered pass-through, which means cuts will impact a broad range of enterprises. Businesses that provide a professional service (such as accounting and law firms) can also access the reduction, but only if their taxable income is less than $315,000.

What About Corporations?

Tax rates for corporations were also greatly reduced. While in previous years the corporate rate was 35% on income over $10 million, it’s now been decreased to 21%. The goal of these cuts is to attract corporations to the United States thanks to more favorable tax codes. Conversely, tax cuts for small businesses are intended to make them more competitive with larger enterprises.

Understanding new and existing tax laws can be a real challenge for the average business owner. The experts at The Callen Accounting Group, PLLC can help business owners and individuals in the Twin Lakes area make sense of complex codes to ensure their tax returns are filed efficiently and accurately. Take advantage of their expertise by calling (870) 425-6066 today. Visit them online for more helpful tax tips for small business owners.

Other Announcements, Events and Deals from The Callen Accounting Group, PLLC
Make Sure Repairs to Tangible Property Were Actually Repairs Before You Deduct the Cost, Mountain Home, Arkansas
If your business made building or equipment repairs last year, the cost might be fully deductible on your 2017 tax return.  But it might not be …… For more information click more
Small Business Owners: A SEP May Give You One Last 2017 Tax and Retirement Saving Opportunity, Mountain Home, Arkansas
It's not too late for business owners to set up a retirement plan for 2017 and save tax when they file their 2017 return.  How?  With a Simplified Employee Pension (SEP). more
Coming to a Paycheck Near You, Mountain Home, Arkansas
Is your employer withholding enough in taxes.  Click here to find out. read more
Why You Should Hire a Tax Consultant Instead of Doing Them Yourself, Mountain Home, Arkansas
Tax software has become more and more popular in recent years. As a result, millions of Americans across the country are doing their taxes on their own. Unfortunately, software is more