Small Business Help: 5 Tax Deduction Changes We Need to Know About for 2018
As authors and small business owners, we need all the small business help we can get!
Today is April 17th, 2018, the final day to file our taxes for 2017. Was tax preparation a stressful and frustrating process this year? If so, let’s see how we might make it a bit easier for 2018. Being prepared for what is coming next can significantly help us.
Some things are changing for 2018 that we need to know about now so we can plan for them. A recent article in Entrepreneur magazine outlines them.
Here is a brief summary of the changes outlined in the article
- Meals and Entertainment. While we can still deduct meals, the entertainment deduction is now removed from deductions. Plan to take clients to lunch or dinner, not to the golf course!
- Business automobiles: We will now see an increased deduction for depreciation of the automobiles we own (not lease) that are used for business. We’ll take it!
- Mortgage interest: The deduction for interest on home equity lines of credit has been eliminated.
- Alimony: Alimony is still deductible, but only if you get divorced by the end of 2018. Read the full article for the details.
- Medical expenses: The threshold for the deductibility of medical expenses will increase from 7.5% of our AGI (adjusted gross income) to 10% in 2019.
There are clearly implications in these tax deduction changes.
Disclaimer: I am not a tax accountant or CPA. This information is provided based solely on the research of the author of this article. As with any general advice around financial and tax topics, consult with a professional to see how these apply to your situation.
The small business help tip here is to consult with a tax advisor. By doing so, we’ll be able to think through and plan our actions this year.
Check out the full article here.
