Small Business Guidance: For Manufacturers

Each business has its own unique set of challenges to face, and decisions to be made. There are many factors that need to be considered. The type of business and industry that it is in will play a key role in getting a clear understanding of things. Other times, the right set of circumstances may come into play and make what seems to be an ideal situation. We will take a look at how this is true of the Manufacturing industry.
The recent Tax Cuts and Jobs Act has made changes that will directly affect Manufacturing industry businesses. For example, Tax Reform has made it possible to deduct the full cost of property bought and used, as long as it is done so before 2023. This provision will be reduced by 20% each year afterward and then expire by 2027. Incorporated manufacturers will see a lower Tax Rate as well. There are certainly some immediate benefits to being a manufacturer in the times we are living in!
However there are some drawbacks to consider. Owners of what can be called “pass-through” entities must know that this deduction will expire in less than 10 years. A manufacturer that has an international presence is now obligated to pay taxes on foreign earnings. These changes will affect each business in a different way. At Anthony Sykes & Company Inc we are here to help you understand and make the best choices going forward. Please visit us at our site to learn more about the options we can provide for you.

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