Its that time of the year again. If you're a business owner here are the rules on the new 20% Pass-Through Income Deduction for 2018.
Owners of certain pass-through businesses will be allowed to deduct up to 20% of qualified business income from a partnership, S corporation, or sole proprietorship (not an LLC or C corp) for tax years after December 31, 2017, and ending prior to January 1, 2026.
Service businesses, including health, law, consulting, athletics, and financial services, are only eligible for the 20% deduction if they make less than $315,000 of taxable income married filing jointly, and $157,500 for other taxpayers. Electing small business trust also qualify for the up to 20% deduction.