Starting in tax year 2018 the Tax Cuts and Jobs Act provides for a 20% deduction on qualified business income from pass through entities such as partnerships, S corporations and sole proprietorships. Generally, qualified business income refers to the net profits of the business. The threshold for the basic formula is taxable income under $157,500 for single filers and $315,000 for married filing joint filers. Once taxable income passes these threshold amounts certain limitations and phaseouts apply. For more information on your eligibility for the qualified business income deduction please contact our office.
