Inventory accounting change could benefit small firms

Even with the new depreciation options and qualified business income deduction available in the wake of recent tax reform, there are always circumstances in which a taxpayer could require additional current-year deductions. With the help of another element of the Tax Cuts and Jobs Act (TCJA) that took effect in 2018, certain small businesses accounting […]

Questions about business tax deduction persist

The Section 199A deduction constitutes one of the most scrutinized and technically challenging elements of the Tax Cuts and Jobs Act of 2017. Created as a means for businesses other than C corporations to keep pace with the corporate tax cut from 35 percent to 21 percent, Section 199A provides a 20 percent deduction for […]

Qualified improvement property rules offer benefits

Small business owners historically have been frustrated they’re unable to recover nonresidential commercial real estate costs through depreciation in a reasonable amount of time. Nonresidential real property had been relegated to a 39-year straight line recovery life with no opportunity for accelerated deductions. This unfavorable depreciation period and disappointing annual deduction led real estate investors […]