It is always important for small business owners to familiarize themselves with tax laws, especially during a period of transition in power. This year is no exception, seeing as President Trump has already made headway in reforming standing tax laws and regulations. Here are several changes small business owners should prepare themselves for:

Bonus Depreciation

Under the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), bonus depreciation, a tax break that allows businesses to deduct 50 percent of the costs for new capital equipment at the time of its purchase, is set to remain in place until 2019. However, the return rate of bonus depreciation is anticipated to drop to 40 percent in 2018, with another decrease to 30 percent following in 2019. Therefore, if a small business owner intends on updating their equipment, it is best to do so sooner rather than later.

b>Reduced Pass-Through Tax Rates

Although President Trump promised to cut the corporate tax to 15 percent during his campaign, many small business owners were concerned they would be left out of the equation. However, Trump’s latest tax reform proposal left many small business owners feeling optimistic, seeing as it will reduce the income rates paid by pass-through businesses, which includes small businesses formed as partnerships and limited liability companies, to the same 15 percent.

Filing Deadline Changes

Small business owners faced tighter filing deadlines this tax season, with C-Corporation returns having been pushed back and Partnerships’, S-Corporations’, and LLCs’ moved forward. Furthermore, state deadlines were shifted around to either conform or resemble the current federal standard: April 15. Although these changes seemed sudden, small business owners were granted extensions if they happened to miss their deadlines. However, owners were still required to make estimated payments if they expected to owe money.

Changes To The Affordable Care Act

It is no secret that the Trump administration has every intention of repealing and replacing the Affordable Care Act. Recently, a reformed health care bill, the American Health Care Act, was introduced to Congress. Although it has just begun its arduous journey to being passed into federal law, the ACHA holds great promise for all small business owners. For example, the ACHA would eliminate most of the ACA’s taxes, as well as delay the implementation of the “Cadillac tax,” for several years. Additionally, if the ACHA is passed, it will lower corporate uncertainty by establishing a stabilization fund that will help insurance companies handle the fluctuating market that will inevitably ensue.