Eye On Housing
The Tax Cuts and Jobs Act (TCJA), signed into law in late 2017, created a new section of the tax code—199A. Section 199A provides a 20% deduction for “qualified business income” generated by pass-thru entities such as LLCs, partnerships, and S-corporations. The law went a long way to help small business owners compete, but left a bevy of unanswered questions…. Read More ›
The prior two Tax Reform Toolkit posts have explained the new 20 percent pass-thru deduction (i.e. 199A) as it applies to pass-thru owners with: Less than $315,000 (married filer) or $157,500 (single) of taxable income, or More than $415,000 (married) or $207,500 (single) of taxable income. In the case of (1), the pass-thru deduction (A) is generally equal to 20… Read More ›
Eye on Housing’s first Tax Reform Toolkit post explained the basics of the new 20% deduction for pass-thru income (i.e. the 199A deduction). That article focused on how the deduction works for a taxpayer who has less than $315,000 of taxable income if married and filing jointly ($157,500 if single). In general, these taxpayers may deduct 20 percent of their… Read More ›