You may know that new Section 199A of the tax code gives you up to a 20-percent tax deduction for your pass-through business income. But what about your rental activities? Do they qualify you as an individual for this potential 20-percent deduction? These are important questions that we’ll answer fully when you read my new article titled Tax Tips: New IRS Regs: Does Your … [Read more...]
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How to Create A $63,000 199A deduction
If you earn a lot of money, be very careful. You see, if you operate an out-of-favor, specified-services business, your 199A deduction may vanish into thin air. Poof! _________________________________________________________ Definition of “out-of-favor” according to Uncle Sam Under the 2018 tax code, “out-of-favor” groups include lawyers, doctors, accountants, tax … [Read more...]
New IRS 199A regulations benefit out-of-favor service businesses
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...]
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...]