"[P]ennies add up."
Although that perhaps sounds like an adage uttered by Benjamin Franklin, it is actually a base economic reality delivered recently by the owner of a small business. That individual is enthused thus far in 2018 by recently delivered federal tax cuts that he says are empowering him to make some growth-linked decisions that he previously could not.
Many other small and mid-sized business owners in the Washington, D.C., metro area and nationally are thinking similarly in the near wake of new tax laws just ushered in that seemingly benefit legions of company owners in material ways.
Numbers crunchers, tax gurus and various business commentators largely agree with the optimism being expressed by many entrepreneurs, owners of start-up entities and other principals seeking to expand their enterprises. As they do so, though, they also urge a bit of restraint and caution, arguing that existing uncertainties and needed regulatory clarification make a go-slow approach advisable.
"There's confusion out there," says one. Further explanation needs to be provided regarding the precise meaning of "qualified business income" that can be materially deducted by select business owners, notes another.
Notwithstanding some murkiness, much about the changes is clear-cut, spelling flatly welcome news for many business players who can now exploit new opportunities: Here are two things to note:
- Doubling of the deduction amount for equipment
- Opportunity for taking full up-front deductions on select equipment/property purchases in lieu of spreading out depreciation over several years
These are exciting times for owners of smaller and medium-sized business enterprises, bringing both new opportunities and challenges. Questions or concerns regarding any commercial-related issue can be directed to an experienced business law firm.