When lawmakers recently passed the “Tax Cuts & Jobs Act of 2017,” they created a new tax deduction.
It’s found in new tax code Section 199A, also known as the “Qualified Business Income Deduction.”
Will it be good for you?
Sure. If you’re not earning a lot. But if you’re a high earner, and operate a “specified service trade or business, “ your 20% deduction (under Section 199A) will disappear entirely!
Want to learn how you will be affected by the new tax law?
Read my new article titled Tax Tips: Tax Reform Sticks It to Doctors, Lawyers, Athletes, Traders, and Others!
Three ways our fact-filled article can help you:
- You will learn the impact of running a “specified service trade or business.” To put it simply, you’re a loser if you’re a doctor, lawyer, accountant, consultant, or security trader. And that’s just for starters! You’ll get the whole story when you read the full article.
- You will see how much you have to earn before Uncle Sam sticks it to you big time. The dollar amount depends on whether you file a joint return or file as a single taxpayer. You’ll learn what the disqualifying number is when you read the full article.
- You learn how you might qualify for a partial deduction. Here’s some good news. There are some phase-out levels for single and married taxpayers (filing jointly) that can help you out. If you’re in an out-of-favor professional group, but you earn less than the phase-outs, you’ll qualify for a partial deduction. All will be explained when you read the full article.