Factors such as whether you pay your employees, own the real estate upon which your business is situated, keep separate books and bank accounts, along with many more elements in the fine-print can stop you from gaining these lucky breaks. Furthermore, businesses in health, financial services, consulting, entertainment, and law will be excluded from these deductions.
Inherent to this legislation is a number of grey areas and anomalies that could be loopholes for businesses to gain the breaks. Many CPAs are warning that IRS employees will have to make judgment calls that could vary substantially. For entrepreneurs, this could be a gut-wrenching time to file taxes, and no clear resolution is in sight.
There are so many questions that CPAs do not have answers to, and with the legislation the way it is, many answers will not be revealed until after the tax season has passed. As a result, many businesses may be unable to gain this life-life-changing break that could significantly alter the course of their company.
