I'm certainly not a tax expert, but have been using Turbo to file ours for many years. All those business deductions going away will put a crimp in our travel and how much we spend on shows - not to mention other expenses too. If this thing gets passed I can imagine it'll put a real dent in shows themselves as well.
Comments
It appears to be for employees
I'm poor and broke no matter what change in tax law.
In the longer term, i.e. next seasons shows, it will be interesting to see if the generally public increases or decreases their show purchases. When they get hit farther out it could be bad, as their rates increase. It pays to stay on top of all this tax/economy crap to try to do some advance planning on what you can/cannot expect to do with your art. I.E. Black Friday gun sales were at record highs, so I plan to hit the summer shows with a full inventory of leather holsters.
If you area Sub S your pass thru rate goes down
Jane, your example is very helpful. Thanks for posting it.
Thanks, Sharon, for posting this. It clears things up. This new tax bill is a nightmare and very scary for all of us who will be most affected by it.
Does the 2017 Tax Reform Bill Eliminate Small Business Deductions? FALSE.
https://www.snopes.com/tax-bill-small-business-deductions/
Thank you Jane for your comment. I was worried about the business expenses being eliminated however I haven't done any research like the rest of you. I am grateful so many of you have and I just wanted to say thank you.
My sister, who is an enrolled agent with the IRS, says that this is not true. In the proposed law there is no change to what you can deduct as a direct business expense if you own your own business. There are changes to what can be deducted as unreimbursed employee business expenses. For example, if you work for a company and you use your cell phone for business and the company does not reimburse you for the cell phone that will no longer be deductible under the proposed new law. On the other hand, if you have your own business and use your cell phone for business it will be deductible as a business expense.
I am highly skeptical of the validity of the original Facebook post. I could find no evidence of the truth of it anywhere. In fact, here's the profile that goes with that guy's picture, and that post is not publicly visible. In fact, nothing in his profile suggests that he prepares income tax, it says he's an actor. I am very skeptical. https://www.facebook.com/jim.anthony.31
Full disclosure: I found this thread while researching the FB post, and created my account specifically to comment on this. So hello everyone.
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