5 New 2017 Tax Rules Your Small Business Needs to Know
The tax rules of yesteryear are going the way of the dodo.
While President Donald Trump will not be throwing the tax rulebook out the window, he and congressional Republicans have vowed to make drastic changes to the code this year. And even if they didn’t make a single alteration from here on out, the table was already set for 2017 to include a number of tax changes and some affect small businesses.
Here’s a look at some new tax rules that may impact your company this year.
5 New Small Business Tax Rules for 2017
1. Check Your Calendar: A couple of filing dates have been changed for 2017. For one, while partnerships previously were due on the normal Tax Day, April 15, they’re now due March 15. The script is flipped for C corporations, whose date is moved back from March 15 to April 15.
2. Automatic Extensions: Automatic extension rules for corporate returns have changed as well. If your C corporation’s tax year ends on December 31, three-month automatic extensions are ramped up to five months; if it ends on June 30, you have up to seven months.
3. Small Employer HRAs: Starting this year, eligible small business health reimbursement arrangements (HRAs) won’t be treated as a group health plan – something that could help a small business avoid excise taxes under Code Section 4980D.
4. Watch Your Mileage: If you claim car mileage on your small business tax returns, you need to know that the IRS has slightly clipped the mileage rate for 2017. This year, the rate is 53.5 cents for business use of a car – down from 54 cents last year.
5. Buying Equipment? A Section 179 deduction for small businesses purchasing equipment – including anything from vehicles to computers – will increase from $10,000 to $510,000 in 2017. The tax break begins to be curtailed once a company spends more than $2.03 million.
This is just a short list of some of the tax code changes coming in 2017. However, if you want a more comprehensive look at what your small business could face this year, McManamon & Co. has an expert staff well-versed in small business tax codes, and we can ensure you’re prepared for the year ahead.
The smartest thing any small business can do when it comes to tax season? Get ahead. Don’t wait until next year and hope you fall into a few deductions. Call McManamon & Co. at 440.892.8900, or contact us online, to start crafting a plan that incorporates the new small business tax rules for 2017.
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