Have you heard about the new 199a tax deduction that went into effect on Dec. 22,2017? This new tax law was created as a deduction for households with income from pass-through businesses – such as partnerships, S corporations, sole proprietors, and the self-employed, which are not subject to the corporate income tax.
- Do you own a partnerships business?
- Do you have ownership in a S corporation?
- Are you a sole proprietorship?
- Are you self-employed?
If you answered yes to any of these questions, you might be eligible to take advantage of the The Tax Cuts and Jobs Act of 2017 (A.K.A 199a). This new deduction could qualify you for a tax deduction valued at up to 20% of your Qualified Business Income (QBI) or up to 50% of your business’ agrregate W-2 wages paid!
This new option presented the biggest changes to both individual and corporate taxes that we’ve seen in the past 30 years! The new law is a bit complicated and cumbersome, but that’s where Leonardo & Co, PA comes in, we specialize in tax strategies.
If you haven’t already spoken to someone to see how you can take advantage of this new tax law, fill out this form. We will call or email you back to help you figure out if you qualify or how you can make the best use of this new business deduction before it is too late for the new tax year!
Some strategic options will need to be implemented sooner rather than later to avoid missing out on significant tax savings opportunities. Depending upon the nature of your business, your annual income, wages paid to employees, and business structure, you may or may not need to make some changes in order to take full advantage of the new Code Section 199a, Qualified Business Income Deduction (QIBD).
We will get back to you within 24 business hours.