Small Businesses Set to Receive a Substantial Tax Break this Year

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If you own a small business, then you are in luck as the government just announced that they will be introducing substantial tax breaks for small businesses. However, in an unfortunate twist, this tax break only applies to a very small amount of businesses, and CPAs are warning that it may be extremely difficult to uncover whether your company will be able to reap these benefits.

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New legislation was introduced that will provide these extra write-offs, but they will only apply towards businesses with qualified business income. As a result, it is extremely difficult for tax attorneys to discern what activities will enable businesses to pursue this additional income.

The Internal Revenue Service attempted to provide businesses with additional clarifications in January, but with the government shutdown, much of the uncertainty continues to persist. On the most basic of levels, businesses will receive the full deduction if it is run by owners who are married, file jointly, and whose income does not exceed $315,000. According to these rules, more than 90-percent of small businesses would qualify for this deduction. However, there are a mind-numbing amount of factors that further complicate this already hard to understand legislation.