Full Name: An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.

Colloquial name: Trump Tax Cuts aka New Tax Law of 2017

• The maximum corporate (C-Corp) tax rate is now 21%, while pass-through entities (S-Corp, partnerships, LLCs, etc.) have the option of deducting up to 20% of income. There are limitations but this is down from the maximum rate set in 1993 of 35%.
• The uncertainty is over. Will it pass? Is it dead? Uncertainty is not good for Wall Street or small business owners. Whether you like the new tax law or not, now you know what it is.
• Buying commercial real estate property might be a great way to reduce taxes. By buying a new building, or if your business occupies more than 51% of your existing building, and setting up a new pass-through entity as a real estate holding company may be a great move for you. The SBA 7(a) loan lets you buy a building and obtain working capital for growth at the same time with a low down payment. There are SBA loan calculators here to help you determine how much you can qualify for and what the payments and loan terms might look like.
• Corporations that do business abroad will no longer be taxed by the United States on the profits they generate overseas.
• More money in the pockets of 80% of all consumers almost right away.
• According to the International Franchise Association (IFA), this is a simplification of the Tax Code. There is much debate on this.
• If you’re in a professional service business related to the new tax codes, you have a lot of new business ahead of you.
• Some professional services such as some engineering and architecture firms will not be disqualified from tax breaks as other professional services are.
• If you pay a “base salary” plus commissions or bonuses, you may be able to pay a lower base salary if the employee has reduced tax obligations.
• There are numerous benefits for owners of successful small businesses including lower tax rate, reduced estate taxes, reduced taxes on transfer to heirs and many more benefits to discuss with your tax advisor and attorney.