It's crucial to stay updated on tax law changes that may affect your small business as we start a new tax year. Here are the latest updates to Corporate tax rates and Section 179 expense limits for your reference.

C Corporations

• 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)