Businesses for the most part benefit from changes to tax law put in place at the end of 2017. But there are notable exceptions the Wilton Manors Book Keepers of Sterling Accounting want to bring to light.
One notable change is in the arena of meals and entertainment. According to Fortune:
Businesses — especially smaller firms — may scale back on treating clients to major league baseball games, golf outings and the like after Congress and President Donald Trump ended a tax break for such entertainment.
The tax overhaul that Trump signed Dec. 22 eliminated a 50 percent deduction for business-related expenses for “entertainment, amusement or recreation.” Suddenly, luxury boxes at stadiums and arenas — along with theater and concert tickets — will be more costly for firms that use them to woo clients.
Businesses that use the entertainment deduction extensively — including law, investment, accounting and lobbying firms — will have to gauge the effects on their bottom lines. Smaller businesses will be less able to absorb the cost.
“I am a long-time, long-suffering season-ticket holder to the New York Jets, so a lot of time, I take clients,” said Charles Capetanakis, a lawyer and certified public accountant at Davidoff Hutcher & Citron LLP, a mid-sized law firm in New York. Eliminating the deduction “is really going to hurt the small businesses that need to promote their business by entertaining clients.”
While the meals and entertainment changes may be difficult, businesses do benefit from quite a few things in the new tax law.
The overhaul cut the corporate tax rate to 21 percent from 35 percent, and created a 20 percent deduction for many pass-through businesses.
To keep up with the changes, consult with the Wilton Manors book keepers of Sterling Accounting.