Eye On Housing
Before the Tax Cuts and Jobs Act (TCJA) went into effect, a business’s net operating losses (NOLs) could generally be carried back two years and carried forward 20 years to offset taxable income. Tax reform, however, repealed the two-year carryback allowance and other special carryback provisions for losses arising in tax years beginning after Dec. 31, 2017. The TCJA also… 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 ›
One of the new aspects of the tax code is the 20% pass-thru deduction, also known as the 199A deduction. It is a centerpiece of the tax bill, and one which most small business owners have heard about. Nevertheless, it warrants detailed explanation because, unsurprisingly, it is more complex than it at first sounds. This post covers the basics and… Read More ›
Specialty contractors structured as partnerships generated aggregate net income of $4.5 billion in 2014, according to the most recent IRS data available.[1] These data are broken out by industry and income tax deductions, allowing us to compare the use of tax deductions by partnerships across a wide array of sectors. Analyzing the size of depreciation and business interest deductions taken… Read More ›
As part of NAHB’s examination of tax issues and the housing sector, our focus now turns to small business tax concerns. Earlier today, Marty Mitchell of Mitchell and Best Homebuilders testified before Congressional Committee on Small Business on behalf of the nation’s home builders. His testimony included a number of facts that illustrate the importance of small businesses to housing. NAHB Census of Membership… Read More ›