(616) 776-6457 | [email protected]


How do the TCJA tax changes affect my business?

January 29, 2019

The law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 has taxpayers a bit concerned about the sheer number of changes.

It is true that in past years, tax code changes have been less sweeping. But you can rest assured that Morgan & Associates has been carefully studying the changes and is well prepared to help you with all of your needs this tax season.

Here’s a short overview of the biggest changes for the 2018 filings.

  1. Individual returns: The standard deduction has nearly doubled, which means most taxpayers will likely choose the standard deduction instead of filing with itemized deductions. But, for larger families, the tax benefit of the higher standard deduction may be offset by the loss of the personal/dependency exemption deduction. Check with your CPA on this one.
  2. Child tax credit increase: The TCJA doubles the basic credit amount from $1,000 to $2,000 per qualifying child and increases its refundable portion. The TCJA also nearly quadruples the credit's phaseout threshold for joint filers and raises it significantly for others.
  3. Qualified business income (QBI) deduction: Noncorporate entities and individuals can receive a deduction of the lesser of (A) combined QBI, or (B) 20% of taxable income over net capital gain. This section was meant to provide a tax reduction for most noncorporate business income comparable to the rate reduction in corporate income taxes the TCJA provided. We’ll talk more about the QBI deduction in future blog posts.
  4. 100% bonus depreciation: The TCJA allows 100% first-year special allowance ("bonus") depreciation for property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023. 
  5. Net operating losses (NOLs) are limited: Starting with NOLs in tax year 2018, most NOLs may no longer be carried back, and carryovers may equal no more than 80% of taxable income for the carryover year.

Look for our next blog posts diving deeper into the QBI deduction. We’ll talk about who qualifies and how you can use the 20% deduction for trusts.

Back to List

In three easy steps, our team can help you
find your path to a sustainable, profitable business
and more individual freedom.


BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.

read more

 Our Specialties


We understand that the countless number of tasks associated with running a successful practice leaves you with little time to deal with your numerous accounting and tax responsibilities. That is where ...

read more

Property Management

With proactive tax strategies and industry-specific expertise, we have a proven track record of helping property management firms succeed from...

read more


If you contract your services as a salesperson, freelance writer, graphic designer, real estate professional, or other profession contact us to learn about the comprehensive, affordable...

read more


Morgan & Associates has extensive experience in nonprofit accounting, currently providing audit and tax return services to a growing number of...

read more


Latest from Our Blog

qb-proadvisor-desktop qb-proadvisor-advdesktop qb-proadvisor-online qb-proadvisor-advonline qb-proadvisor-enterprise

Learn More