QBI Update: Impact of Negative QBI and Previously Suspended Losses

Section 199A of the tax code can give you
a 20% deduction… or a throbbing headache.

We’ll give you the details (and a couple of aspirin)
when you read the full article:

“QBI Update: Impact of Negative QBI and
Previously Suspended Losses”

[QBI=Qualified Business Income]

Is your business defined by the IRS as a pass-through entity*? (If you’re reading this email, it probably is.)

If you are running a pass-through business entity, you can take advantage of Section 199A of the tax code.

It lets you use your QBI to create a 20% deduction. Nice!

However, and it’s a big “however,” things can get complicated fast as we’ll explain when you read the full article.

Here’s what’s going on…

Fact:
Yes. You can deduct your pass-through losses in the current year. But a pass-through of a loss could harm your QBI for the current year. Watch out!

Fact:
You may have to suspend the losses and carry them forward to future years. The suspended losses can also result in negative QBI in the year you deduct them!

Sound complicated? It is. Very. But you can make your life a whole lot easier if you remember the bottom line:

Negative QBIs, and previously suspended losses, can bite you if you handle things wrong.

We can show you how to handle things right when you…

Read the full article,

“QBI Update: Impact of Negative QBI and
Previously Suspended Losses”

*Pass-through entities are defined as sole proprietorships, single-member LLCs treated as sole proprietorships (for federal income tax purposes), partnerships, multimember LLCs (treated as partnerships for federal income tax purposes), and S corporations.