20% Tax Deduction! 199A Optimization: Do You Qualify?
As of 2018, there is a new 20% Section 199A deduction that your accountant may have missed. Yes, you heard that right – 20%! This new deduction is a big deal. There are many rules, but your odds as a business owner of benefiting from this new deduction are excellent.
Now get excited, because if you operate your business as a sole proprietorship, partnership, or S corporation, your income from these businesses can qualify for some or all of this deduction.
You may also qualify for the 20% deduction on the income you receive from your real estate investments, publicly traded partnerships, real estate investment trusts, and qualified cooperatives.
Here’s a simple example: Let’s say your net qualified business income from your pass-through business is $100k. Assuming other qualifications are met, with the 199A deduction, you only pay tax on 80k of that $100K! Obviously, the more PROFITS you have from your business, the more you can potentially SAVE.
We frequently help clients maximize their 199A deduction. We have some clients that save 6 figures in tax with 199A alone, but only with careful planning. Since there are so many rules that can allow or restrict this deduction, it is an absolute must that you have a tax professional help you. Fortunately, we can do all of this figuring for you… and even better? 199A Optimization is included in both our Professional and VIP tax packages.
We would love to spend some time with you, planning for this deduction and teaching you how to pay less tax. To schedule a consultation, please contact us today. Thanks so much for joining me!