Tax Law Makes Small Businesses Rethink Ideas

As Congress debated a new tax law at the end of last year, Jerell and Elissa Klaver began revising their company's plans for 2018.The Klavers crunched the numbers, estimating how a lower tax rate and bigger deductions on equipment purchases could help increase their sales of bath soaps and other personal care products. They've already hired an engineer to create new manufacturing machinery for their company, Fort Collins, Colorado-based SALUS."For our business, pennies add up. If I can save a penny, it gets big really fast," Jerell Klaver says.Although there are still many unknowns about the tax law that took effect Jan. 1, some small business owners have already figured out that they stand to gain from some of its changes and are changing their plans to maximize their benefits. Some believe they'll get a break on income taxes for sole proprietorships, partners and what are called S corporations. Those who buy new computers, vehicles or other equipment can take a bigger deduction.