As we’ve discussed in recent issues of the Tax Reduction Letter, Section 199A provides a valuable 20-percent tax deduction for many businesses. But as you may recall, the regulations deny the deduction to certain “out-of-favor specified service businesses” (when individuals’ incomes exceed certain limits. This has caused a lot of pain and consternation). But now there’s … [Read more...]
Legislation
Sorted by Date
How to find your Section 199A deduction with multiple businesses
Calculating your Section 199A deduction for a single business can be complicated and confusing. If you have multiple businesses, things get even trickier. There are more decisions to make. More choices to consider. More complications to deal with. That’s where our new issue of the Tax Reduction Letter comes in. We’ll show you step-by-step how to calculate your correct … [Read more...]
How capital gains can destroy your 199A 20-percent deduction
Are you eligible for a Section 199A 20-percent tax deduction? When you start to answer the question, don’t forget about your capital gains. Why? Because they add to your taxable income which is the key to determining your qualification for some, all, or none of the 199A deduction. Don’t miss this opportunity to find out if a hefty tax deduction is coming your way. Read … [Read more...]
IRS clarifies “reasonable comp.” for S corp. owner’s 199A tax deduction
In August, the IRS released its proposed regulations governing Section 199A of the tax code. That’s the section that created the 20-percent deduction that applies to S corporations and other pass-through entities. I’m glad to report that the new regulations contain some very good news… The reasonable compensation the S corporation pays its shareholder-employees are … [Read more...]
TCJA: Convert Personal Vehicle to Business and Deduct up to 100%
Now is the time to convert! Not your religion. Your vehicle. You see, thanks to the Tax Cuts and Jobs Act, when you convert your personal vehicle to a business vehicle, you could save a lot of money. In fact, upon conversion, you can instantly qualify for a 100-percent deduction on the fair market value of your personal vehicle. Want to find out more about how to use … [Read more...]