Thanks to the Tax Cuts and Jobs Act of 2017 (which was signed into law on December 22, 2017), and more specifically the new Section 199A (which is a part of that Act); owners of pass-through business entities may be able to substantially reduce their income tax burden.
The IRS has now issued proposed regulations, which provide guidance to determine the eligibility and the amount of any potential Section 199A deduction. For example, many taxpayers will be limited by certain income limits ($315,000 for returns filed as “married filing jointly” or $157,500 for other filers). Other taxpayers may be limited by the type of service their business provides.
Some of the questions we must consider concerning eligibility are: Continue reading “IRS Gives more Guidance on Section 199A Tax Breaks for Certain Businesses”