As discussed in Part 1 of this WRMarketplace, the recent tax reform legislation reduced the effective tax rate for pass-through business owners by providing these owners with up to a 20% income tax deduction based on the owner’s share of the business’s “qualified business income.”
Passthrough taxation
Decoding Tax Reform: Pass-Through Entities Part 1 – The 20% Deduction for Qualified Business Income
Topics: Passthrough taxation, Tax treatment
The new tax reform legislation enacts a 20% income tax deduction based on the “qualified business income” of an owner of a business structured as a sole proprietorship or pass-through entity. If the deduction can be fully utilized, it will result in a marginal rate on qualified business income of 28% for a typical taxpayer…
Decoding Tax Reform- Interim Update – Where We Are Now
Topics: Estate planning, Estate tax, GST, Passthrough taxation, Tax reform
Last week, the tax reform effort took major steps forward, as the House passed its version of the Tax Cut and Jobs Act (“House Bill”) and the Senate Finance Committee passed its legislative mark-up (“Senate Bill”). Yet, the Bills differ in several key areas, including: (1) estate and GST taxes, (2) the state and local…
Oh No, There Goes the S Corp – Reviewing Trust Eligibility to Hold S Corp Stock
Topics: Passthrough taxation, Tax treatment
A federal election to treat a company as a subchapter S corporation (an “S Corp”) enables taxation of a small business corporation as a pass-through entity for federal income tax purposes, avoiding the dual taxation otherwise imposed on corporations and their shareholders.