Four Big Changes in Tax Rules For C Corporations
Review these changes to avoid tax penalties
1. Tax rates
As of January 1, 2018, C corporations have a flat 21 percent tax rate, as compared with former graduated rates up to 35 percent. However, fiscal year corporations with a tax year including days in 2017 must use a blended rate. This means graduated rates apply to the portion of the tax year falling within 2017 and a flat 21 percent rate for the portion of the year in 2018.
Until now, C corporations (other than "small corporations") faced a 20 percent alternative minimum tax (AMT) if it was greater than their regular tax. However, the corporate AMT has been repealed as of the end of 2017. As in the case of tax rates, fiscal year C corporations must still deal with the AMT for the portion of their tax year that includes days in 2017.
Please select this link to read the complete article from Inc.