Experienced
Tax Accountant – Many sole proprietors and self-employed
individuals, partners in partnerships, beneficial owners of trusts, and
shareholders in S corporations may be eligible for a new deduction - referred to as
Section 199A or the deduction for qualified business income - allowing them to
deduct up to 20 percent of their qualified business income. The deduction is
available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can
claim it for the first time on the 2018 federal income tax return they file in
2019.
Qualified
business income includes domestic income from a trade or business. It does not
include employee wages, capital gain, interest and dividend income. The
deduction is generally available to eligible taxpayers whose 2018 taxable
incomes fall below $315,000 for joint returns and $157,500 for other taxpayers.
It’s generally equal to the lesser of:
- 20 percent of their qualified business income plus 20 percent of their qualified real estate investment trust dividends and qualified publicly traded partnership income, or
- 20 percent of taxable income minus net capital gains. Deductions for taxpayers above the taxable income thresholds may be limited.
Questions?
Give us a call. We're happy to help! For consultation contact us today!
Amare Berhie, Senior Accountant
CFO Services http://youtu.be/EYJdQtbPZAI
(651) 300-4777
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