As a result of Tax Reform, owners of pass-through entities (e.g. partnerships, S corporations, and sole proprietors) may be entitled to the new section 199A deduction for qualified business income (“QBI”). Under section 199A, certain taxpayers may be entitled to a deduction up to 20% of QBI.
While this deduction potentially creates a substantial tax benefit for owners, it’s complicated. There are complex rules to determine qualification for the deduction and significant compliance and reporting requirements that must be evaluated and then satisfied in-order to ensure the owners receive all the information necessary to properly calculate the deduction.
Do You Qualify?
- Are you a pass-through entity such as a partnership, S corporation or sole proprietorship?
- Does your business have multiple revenue streams?
If yes, reach out to speak to one of our local tax professionals. Email Lauren Soles lsoles@bdo.com to set up a call. Our local team is here to help answer your questions and to provide the best advice to help you minimize your tax liability and keep that money in your growing business.
To browse other specific business issues related to Tax Reform, click here.
