The new tax law is now beginning to hit home for both wage earners and business owners. Depending on media spin the new law is either a pay raise for workers or a boondoggle that only benefits corporate America.
However you view it, there is good and bad to be found. The bad for business owners is the loss of some previously common deductions.
Below are links to four business deductions that are not available for the 2018 tax year or beyond unless congress chooses to amend the law.
Business owners who want to learn more about the lost deductions can find information on the IRS website, www.irs.gov :
— The IRS issued a notice in October detailing the changes in deductions for meals and entertainment. You can find it at https://bit.ly/2t2TnlB . The agency has not yet updated its Publication 463, Travel, Entertainment, Gift, and Car Expenses, on its website for 2018, but the IRS has said taxpayers can rely on the guidance in its notice when compiling their returns.
— The IRS put together questions and answers about new limits on deducting business interest; you can find it at https://bit.ly/2Bubh5t . It has updated its Publication 535, Business Expenses, to reflect the changes for 2018.
— Publication 535 explains the elimination of the deduction for employees’ commuting costs but notes that if an employer is paying for transit or parking to ensure the safety of employees, the deduction can still be taken.