Impact of the 2018 Tax Changes...and the resulting increases vs decreases to the corporation's value

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The significant changes to the past tax regime can be simplified to the following:

Lower Federal Corporate Tax Rate from a maximum rate of 39% to 21%
Limitations on interest deductibility to 30% of a taxpayer’s “adjusted taxable income”.
Limitations on the deductibility of operating losses to 80% of “taxable income”.
Increased deductions for Section 179 and Bonus Depreciation in that 100% of property “placed into service” before January 1, 2023 is deductible immediately. Section 179 deprecation has increased the dollar limitation to $1M for “qualifying equipment” and there are other conditions and planning possibilities.
The introduction of the Qualified Business Income Deduction. For tax years beginning after December 31, 2017 and before January 1, 2026 a deduction will be available for owners of Sub Chapter S corporations, partners, members and sole proprietors equal to 20% of the taxable income of a “pass-through” entity.

ekkarill92 answered 9 months ago

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