Health Insurance Mandate

This penalty is removed beginning in 2019 The market place is not eliminated, just the requirement to have insurance. Large employers with 50 or more employees are still required to offer health insurance

New Qualified Business Income Deduction

(199a Deduction) 20% of the lesser of net trade / business income or taxable income becomes a deduction on your personal tax return if taxable income is less than $315,000 for married filing joint or $157,500 if you are single. Taxpayers with relatively ‘high’ taxable...

Depreciation

Vehicles For the year 2018, you can expense up to $1,000,000 in heavy vehicles and equipment. This also includes appliances and furniture purchased for hotels, rental property, commercial property roofs, air conditioners, and security systems. Note: SUVs with less...

Method of Accounting: Cash Versus Accrual

Cash Method of Accounting is now allowed for any business (other than a tax shelter) whose gross receipts are less than $25 mill. This includes building contractors and personal service corps. Regulations have not been confirmed for the method of changing to the cash...

Meals and Entertainment—HUGE CHANGES

Employee Meals Reduced from 100% to 50% deductible: Meals for employees that are for the convenience of the employer used to be 100% deductible. They are now only 50% deductible.  You should enter these expenses as an ‘other expense account’ named Employee and Travel...