Maximize Your Profits The Ultimate Guide to the LLC 20% Pass-Through Exclusion

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 ... The Tax Cuts & Jobs Act of 2017 introduced a new 20% pass-through deduction allowing certain business owners to deduct 20% of qualified business income if your ... For taxpayers with taxable income above $157,500 ($315,000 for joint filers), an exclusion from QBI of income from “specified service” trades or businesses is ... A passthrough is a legal economic entity that is not subject to the corporate income tax. Instead, the owners of passthrough entities include ... You say the new law “limits the Sec. 199A deduction to no more than 20% of the taxpayer's taxable income,” Assuming a person is smart about ... Business income from pass-through entities qualifies for the deduction regardless of the individual's ownership percentage. The deduction can ... Pass-through entities may claim a 20% deduction of their share of Qualified Business Income (QBI) before paying federal income taxes. There ... The legislation also allows a corresponding refundable income tax credit to certain PTE owners for any amount of income tax paid by a PTE having Virginia ... Purpose of Form ... Use Form 8995 to figure your qualified business income (QBI) deduction. ... However, your total QBI deduction is limited to 20% ... If you qualify, you can deduct from your income taxes up to 20 percent of your business income. That is to say, this deduction effectively ...