Corporate tax rates and Section 179 expense limits are noted here for your use.
C Corporations |
- Flat 21% corporate tax rate. Includes personal service corporations.
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- No alternative minimum tax (AMT).
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Pass-Through Entities (S corps, partnerships and sole proprietors) |
- Taxed as ordinary income.
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- 20% qualified business income deduction available. Income threshold is $164,900 ($163,300 in 2020) and $326,600 joint $329,800 ($326,600 in 2020)*
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*Select companies above these limits may have the income deduction reduced based on wages, property and type of business.
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Section 179 Business Expensing Limits |
- Business equipment Sec. 179 expense deduction $1,050,000 ($1,040,000 in 2020)
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| - Total purchase limit for full Sec. 179 expense deduction $2,620,000 ($2,590,000 in 2020)
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