Corporate tax rates and Section 179 expense limits are noted here for your use.
- Flat 21% corporate tax rate. Includes personal service corporations.
- No alternative minimum tax (AMT).
Pass-Through Entities (S corps, partnerships and sole proprietors)
- Taxed as ordinary income.
- 20% qualified business income deduction available. Income threshold is $170,050 in 2022 for single, separate and head of household filers ($164,900 in 2021) and $340,100 for joint filers in 2022 ($329,800 in 2021)*
*Select companies above these limits may have the income deduction reduced based on wages, property and type of business.
Section 179 Business Expensing Limits
- Business equipment Sec. 179 expense deduction $1,080,000 ($1,050,000 in 2021)
- Total purchase limit for full Sec. 179 expense deduction $2,700,000 ($2,620,000 in 2021)
As always, please feel free to contact us should you have any questions or concerns regarding your tax situation. Stay Up To Date on taxes that affect you!! Subscribe to our Client Newsletter today to receive informative tips and updates on tax and financial changes. Follow CD Tax on Facebook!