If you’re still doing your research, however, let me explain why the Sec. 199A deduction, also known as the “pass-thru entity deduction,” arguably ranks as the best small business tax break of the last half century.
You have to go back to the enactment of the statutes that created the Subchapter S corporation (during the Eisenhower Administration) to find an equivalent tax shelter… A tax shelter that saves thousands of dollars (or more) annually for established small business owners.
The Basic Deduction Formula
Sec. 199A provides owners of pass-thru entities with a deduction equal, potentially, to 20% of their business income.
Someone with $10,000 of pass-thru business income gets, potentially, a $2,000 deduction. Someone with $100,000 of pass-through business income gets, potentially, a $20,000 deduction. And the same math works for someone with $1,000,000 or $10,000,000 of pass-thru income
That’s the good news.
Flies in the Ointment
The law, however, presents small businesses and individual investors with some tricky-to-manage rules and, for high income taxpayers, with more complicated accounting.
Hence, this monograph… It covers in detail how the new deduction works–including coverage of the technical corrections made in the spring of 2018. And it discusses what taxpayers and their accountants need to do—in some cases immediately—to maximize the tax savings available.
Need more Information about what’s in the Monograph?
The monograph, which runs roughly 100 pages, provides tax accountants and sophisticated taxpayers with all the information they need (dozens of simple examples) to start work on maximizing this tax planning opportunity, including:
- At the very start, a general high-level description of how deduction works to get up-to-speed ASAP
- Rich discussion about what counts as qualified business income (the income sheltered by the Sec. 199A deduction)
- How the “pass-thru” deduction works for different types of “pass-thru” entities including sole proprietors, partners and partnerships, S corporations, and rental property investors
- Which service businesses get disqualified and how disqualification works
- How to determine whether you should “un-incorporate” an S corporation… or revoke your Subchapter S election and operate as a C corporation
- A “baker’s dozen” of practical tactics for maximizing the deduction–starting in 2018!
- Checklist of steps taxpayers will want to take on their 2017 tax returns in order to be ready to maximize the deduction in 2018.
- Detailed discussion and examples of the rather complicated rules (including the “grain glitch” fix) for specified agricultural and horticultural cooperatives and their members
The monograph also includes two appendices… the first provides FAQs tax practitioners can share with their clients (via email or traditional letters) to help clients immediately understand the Sec. 199A opportunity… the second provides the text of the Sec. 199A law including the technical corrections.
Your purchase of the “Maximizing Sec. 199A Deductions” monograph includes free updates. We’ve already updated the monograph once for the conference report and the technical corrections made through the March 23, 2018 Consolidated Appropriations Act of 2018. We will continue to update the monograph to address any additional technical corrections and IRS guidance. At the end of the year, we will update the monograph again for any additional information needed for tax practitioners and taxpayers to actually put the Sec. 199A deduction onto their returns.
Money Back Guarantee
And a final important note: We’re of course providing a money-back guarantee… If you’re an attorney, CPA or enrolled agent and you don’t find our monograph saves you several hours of time and lets you more quickly start helping clients with this wonderful new tax shelter, just email us and ask for a refund.
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