Tax Tip: Qualified Business Income Deduction
The Tax Cuts and Jobs Act of 2017 has introduced the new 199A deduction. This is a 20% deduction of business income including sole proprietors, partnerships and S Corporations. There are multiple thresholds and income limits, but with proper planning this deduction is available for most business owners. There are also special deductions for investors in REITs and publically traded partnerships. This new deduction is available for 2018 tax returns.
As always, consult with your tax professional at Ketel Thorstenson about these or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and/or Tax Reform (the Tax Cuts and Jobs Act) affects or questions.