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.
BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.
We understand that the countless number of tasks associated with running a successful practice leaves you with little time to deal with your numerous accounting and tax responsibilities. That is where ...read more
With proactive tax strategies and industry-specific expertise, we have a proven track record of helping property management firms succeed from...read more
If you contract your services as a salesperson, freelance writer, graphic designer, real estate professional, or other profession contact us to learn about the comprehensive, affordable...read more
Morgan & Associates has extensive experience in nonprofit accounting, currently providing audit and tax return services to a growing number of...read more
It could be that QuickBooks is still the best choice for you. It’s an excellent product and many owners use it successfully.
But it’s definitely worth a conversation with your accountant. Ask what other solutions on the market might better align with your business structure.
If you’re not a fan of Black Friday chaos—you know…the crowds, the rush, the relentless search for a parking space—then ditch the onsite shopping this year while still enjoying the sweet deals.
At the end of September, federal prosecutors charged New York-based MyPayrollHR owner Michael Mann with a $70 million bank fraud scheme.