The Tax Cuts and Job Legislation Act signed late last year means changes for both individuals and businesses.

Depending on who you ask, these tax adjustments may be viewed as having a positive or negative effect on our financial future.

However, with strategic financial planning, small businesses could benefit in several ways from the new tax law.

Here’s how:

Take Advantage of Property-Related Business Expenses

Under the pre-existing tax law, up to $500,000 could be deducted as a business expense for certain types of property.

The amount of this deduction will now double to $1 million and could be a significant opportunity for small businesses to grow.

Benefit From Pass-Through Entity Deductions

Some individual tax payers will be able to deduct 20 percent of business income from a pass-through entity, such as S corporation or LLC.

Meaning that a person receiving $200,000 from an LLC, would be able to subtract $40,000, and only add $160,000 to his or her gross adjusted income.

Additionally, there are certain restrictions on this deduction to service-based businesses (i.e. doctors and lawyers) that make over $157,500 (individual filing) or $315,000 (married and joint filing).

Optimize Inheritance for Spouse And/Or Children

While the estate tax will still remain under the new law, the exemptions will double. Therefore, careful estate planning can ensure that inheritance amounts are maximized.

Plan Ahead to Shift Income and Deductions to the Best Tax Year

At the end of one year or beginning of the next, taxpayers have the ability to move income and deductions to the most advantageous tax year.

As a result, it’s important to know when to accelerate or defer income and deductions for the greatest benefits.

Explore Options for a Group Healthcare Plan

As premiums and annual deductibles continue to increase, a group health insurance plan can help manage these costs. Small business owners should consult with a tax expert to determine if they are eligible for this option.

To learn more about what the new tax law means for small businesses, call Blisk Financial Group today to schedule a consultation.