“Small” is bigger than ever – Is your business eligible for expanded tax benefits?

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Abstract: Small businesses enjoy several tax advantages that may allow them to reduce their tax bills, defer taxes and simplify the reporting process. Until recently, federal tax rules generally defined “small business” as one with average annual gross receipts of $5 million or less ($1 million or $10 million in some cases) for the three preceding tax years. But the Tax Cuts and Jobs Act (TCJA) increased the threshold to $25 million for tax years beginning after 2017. This article explains the benefits of being a “small” business. A sidebar explores the ins and outs of changing a business’s structure.