Tax Cuts & Jobs Act--Pass-through Business Deduction -Jeffrey Skakun, Staff Accountant
A pass-through business is an entity where the owner’s report the income on their individual taxes.
Qualified Business Income is ordinary income less ordinary deductions from a pass-through business.
The 20% deduction is on the Qualified Business Income earned by your pass-through business.
All business are eligible for the 20% deduction if the owner’s Taxable Income on their 1040 is below 315,000 for Married Filing Jointly or 157,500 for all other filers. If your Taxable Income is below those values, then you qualify for the 20% deduction on your Qualified Business Income.
However, if your Taxable Income is above 315,000 for Married Filing Jointly or 157,500 for all other filers, then additional limitations come in to effect.
We here at Hall, Kistler & Company would be happy to answer any questions regarding the pass-through deduction, the additional limitations or help with any additional tax planning. Give us a call at 330-453-7633 or click on my name above for assistance.