William Harden

The Tax Cuts and Jobs Act (TCJA) contains the largest collection of income tax law changes in the last three decades. One of the changes included is a change in the wording of IRC §274 so that it now disallows deductions for entertainment expenses. This change prevents taxpayers from deducting the costs of expenditures that are generally considered to constitute entertainment, amusement, or recreation.

By William Harden Apr 9, 2018, 6:07pm EDT Although most attention has focused on individual taxpayer changes, the new tax reform law greatly affects businesses. Most significant is eliminating the graduated C corporation tax rates, which ranged from 15 percent to 35 percent, with a flat 21 percent rate.

There has been substantial discussion about the potential repeal of all or portions of the Affordable Care Act (ACA) (P.L. 111-148), but the current law remains in place for now. While the ACA doesn’t require small businesses to purchase health insurance for their employees, some small businesses do choose to use Health Reimbursement Arrangements (HRAs) to help their employees cover medical expenses or individual health insurance premiums.