199A – Pass-through (a.k.a. Small Business) Deduction – Impact of Reconciliation Proposals Section 199(A) permits pass-through businesses such as sole proprietorships, S corporations, and partnerships to take up to a 20% deduction for qualified business income, subject to certain limitations. Currently, a pass-through business in the highest 37% bracket would pay an effective rate of…
199A
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The Small Business Tax Deduction: Impact of Proposed Section 199A Regulations on Life Insurance Businesses
Topics: 199A
The Treasury Department and IRS recently released proposed regulations regarding the 20% tax deduction for income earned by owners of passthrough businesses that was enacted in the Tax Cuts and Jobs Act of 2017 (TCJA). The proposed guidance regarding the provisions of section 199A of the tax code is lengthy and complex, and there are…