Many tax-related limits affecting businesses increase for 2019
A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have gone up for 2019. Here’s a look at some that may affect you and your business.
Deductions
- Section 179 expensing:
- Limit: $1.02 million (up from $1 million)
- Phaseout: $2.55 million (up from $2.5 million)
- Income-based phase-ins for certain limits on the Sec. 199A qualified business income deduction:
- Married filing jointly: $321,400-$421,400 (up from $315,000-$415,000)
- Married filing separately: $160,725-$210,725 (up from $157,500-$207,500)
- Other filers: $160,700-$210,700 (up from $157,500-$207,500)
Retirement plans
- Employee contributions to 401(k) plans: $19,000 (up from $18,500)
- Catch-up contributions to 401(k) plans: $6,000 (no change)
- Employee contributions to SIMPLEs: $13,000 (up from $12,500)
- Catch-up contributions to SIMPLEs: $3,000 (no change)
- Combined employer/employee contributions to defined contribution plans (not including catch-ups): $56,000 (up from $55,000)
- Maximum compensation used to determine contributions: $280,000 (up from $275,000)
- Annual benefit for defined benefit plans: $225,000 (up from $220,000)
- Compensation defining “highly compensated employee”: $125,000 (up from $120,000)
- Compensation defining “key employee”: $180,000 (up from $175,000)
Other employee benefits
- Qualified transportation fringe-benefits employee income exclusion: $265 per month (up from $260)
- Health Savings Account contributions:
- Individual coverage: $3,500 (up from $3,450)
- Family coverage: $7,000 (up from $6,900)
- Catch-up contribution: $1,000 (no change)
- Flexible Spending Account contributions:
- Health care: $2,700 (up from $2,650)
- Dependent care: $5,000 (no change)
Additional rules apply to these limits, and they are only some of the limits that may affect your business. Please contact us for more information.
© 2019
Tags
2018 Mileage Rate
Accountant
Accountants
Accounting Firm
Accounting Firms
Accounting Services
Bookkeeping Services
Certified Public Accountant
Certified Public Accountants
Chartered Accountant
Chartered Accountants
CPA
CPA Firm
CPA Firms
CPAs
Disaster Tax Relief
Entity
Exchanges
Federal Labor Law
FLSA
Individual Tax
Labor Law
Law Changes
Life At Burkett CPAs
Like-Kind
LLC
Non-Residential
Opportunity Zone
Overtime Rule
Partnership
QBI
QBI Wage Limits
S Corporation
Selection
Tangible
Tax Accountant
Tax Accounting
Tax Changes
Taxes
Tax Planning
Tax Reform
Tax Season
Tax Updates
TCJA
Trump Tax Law
Categories
Services
- Business Advisory Services (132)
- Audit & Assurance (10)
- Business Valuation (16)
- Estate & Trust (24)
- Fraud Examination (15)
- Litigation Support (11)
- Tax Planning & Compliance (306)