Effect of Tax Cuts and Jobs Act on Small Businesses and How These Businesses Can Reduce Their Tax Burden

The key area that this project explores is the Tax Cuts and Jobs Act (TCJA). There is a lot of misinformation surrounding this new tax code and how it differs from past legislation. Tax code is complex, so a variety of interpretations can develop over time. The goal of this project is to detail how TCJA legislation will impact small businesses and how they can use this knowledge to their advantage. The gap this research is filling is to both clarify and interpret this code so small businesses are properly informed. The accurate interpretation of the TCJA tax code could greatly benefit small businesses. The result is that this information can reduce their tax liability which will benefit the livelihood of the small businesses. The methodology of this research includes reviewing IRS tax code, the Journal of Accounting, and the National Tax Journal, as these sources are reliable.