Boost Your Business Tap into the Lucrative LLC 20% Pass-Through Exclusion

The pass-through deduction allows qualified business owners deduct up to 20% of their net business income from their income taxes. The TCJA created a new tax deduction for individuals who earn income through pass-through entities. (IRC Sec. 199A.) If your rental activity qualifies as a ... A pass-through entity is a legal business structure that is not subject to corporate income tax because it passes profits onto the owner(s). If an individual's business income qualifies for the full 20% deduction, the owner's maximum tax rate on that business income is reduced to 29.6%. The ... To take the sting out of pass-through business income taxes, owners may be able to exclude up to 20 percent of qualified business income (QBI) ... Single member LLCs classified as disregarded entities generally do not report their own income separately from their owners. However, they are treated as ... There are a couple of aspects of the pass-through deduction to keep in mind: 1. There are actually two 20% figures. The qualified business ... The amount related to this exclusion of income on the federal return must be added back ... contributions made by the entity (limited to 20% of the entity's ... With the QBI deduction, most self-employed taxpayers and small business owners can exclude up to 20% of their qualified business income from federal income tax. If your taxable income* is under a certain threshold amount, the deduction is 20% of the pass-through income from your business(es), but it ...