NEW TAX DEDUCTION 199A
1. TAX CUTS AND JOBS ACT (TCJA) CREATED A NEW 20% TAX DEDUCTION FOR PASS-THROUGH ENTITIES
2. PASS-THROUGH ENTITIES ARE LLC’S, PARTNERSHIPS, AND S CORPORATIONS
3. AMOUNT OF DEDUCTION IS BASED ON WHETHER YOU ARE CONSIDERED A SPECIFIED SERVICE BUSINESS OR NOT. SPECIFIED SERVICE BUSINESSES (SSB’S) ARE DEFINED BELOW
HEALTH, LAW, ACCOUNTING, ACTUARIAL SCIENCE, PERFORMING ARTS, CONSULTING, ATHLETICS, FINANCIAL SERVICES OR BROKERAGE SERVICES
SSB’S STILL GET A DEDUCTION BUT IT IS LIMITED
SSB’S DEDUCTION IS PHASED OUT FOR JOINT FILERS BETWEEN OWNERS INCOME RANGING FROM $315K TO $415K; SINGLE OR HOH BETWEEN $157.5K TO $207.5K
THIS MEANS THAT INCOME ABOVE THESE AMOUNTS LOSE THE ENTIRE 20% DEDUCTION
4. NON SPECIFIED SERVICE BUSINESSES (ALL BUT THOSE DEFINED ABOVE)
SAME LIMITATIONS APPLY FOR MJF, SINGLE, AND HOH BUT DIFFERENT CALCULATION WHICH YIELDS A HIGHER DEDUCTION
LIMITED TO 20% QUALIFIED BUSINESS INCOME DEDUCTION OR THE GREATER OF EITHER
50% OF THE W2 WAGES OR
SUME OF 25% OF THE W2 WAGES OF THE BUSINESS AND 2.5% OF THE UNADJUSTED BASIS
WOULD YOU LIKE TO KNOW WHAT CRYPTOCURRENCY IS? LOOK FOR TRAINING COMING SOON!!!!!
“FIRST CLASS SOLUTION SUITE”
CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY. DON’T WAIT, CALL OR EMAIL NOW.
Business Email Blog! Can also find this one and previous blogs at www.rtwxxact.com
By Robbie Terry-Washington, CPA
Contact info: [email protected]
OFFICE: GA: 470-441-5140 OH: 216-282-9706 CELL: 216-533-6586 FAX 855-541-5140
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