How Could Tax Reform Impact Your Business, Personal Taxes?

While nothing has been passed and moved to President Trump for his signature, many across the agriculture community have questions how proposed tax reform could impact their operation, or their personal taxes.  Lonnie Coppock with Clifton Larson Allen in Omak says several specific topics remain in the air.  She said when looking at the Senate version, one of the most notable changes; standard deductions are going to roughly double.

“But we’re going to lose all of our personal exemptions.  So, for me, a family of four for instance, I would have a $16,200 in an exemption, my personal standard deduction goes from $12,600 to roundly $24,000, but I’m going to lose $16,000 in personal exemptions, so I have less to write off against my income than I will have in years prior.”

Coppock added in many ways tax reform will make tax law more confusing for small businesses.  She told the Washington Ag Network now is the time to reach out to a tax preparer.

“People that itemize, people with small businesses, especially people with S-corporations and Limited Partners, they need to be aware of the SE Tax, and you need to contact a tax preparer, whether it be there own or whomever.”

Coppock said it’s vital to work now so you are not caught unprepared during tax season.

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