February 4, 2019
A new deduction is creating a lot of buzz for business owners this year. This applies for passthrough entities (S corporations, partnerships, and sole proprietorships) under Sec. 199A.
The Tax Cuts and Jobs Act (TCJA), generally provides owners, shareholders or partners a 20% deduction on their personal tax returns on their qualified business income (QBI).
Specified service trades or businesses (SSTBs) are defined in two categories.
The new rules limits the deduction for certain enumerated SSTBs — if the taxpayer's taxable income is above certain threshold amounts.
● $315,000 for taxpayers filing jointly, and
● $157,500 for all other taxpayers, with a deduction phaseout range (or limitation phase-in range) of $100,000 and $50,000, respectively, above these amounts.
Questions did arise about the definition of SSTBs in consulting and businesses where the principal asset is the “reputation or skill of one or more of its employees” (i.e. reputation and skill provision).
There are only three instances where a taxpayer would fall under this provision:
Basically, the provision targets celebrities and public figures who make their living in the public eye. Many taxpayers gave a big sigh of relief when this information was released, as it was uncertain how expansive the IRS’ definition would be.
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Most businesses use accountants that help them at tax time. They keep track of all of your necessary information, help you sort out receipts and deductions and file for you. But what kind of proactive work do they do for your business?
Once your taxes have been filed, first, take a moment to breathe a big sigh of relief…and then enjoy some Tax Day (April 15, 2019) discounts. There’s nothing like a good deal to take the sting out of tax obligations. Below, we’ve compiled a short list of best food and drink deals, taken from offer.com.
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