MarketWatch Article about new IRS regulations affecting Pass-Through business entities.
The IRS has issued eagerly-awaited regulations that provide details on the new deduction for up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction was a major piece of the Tax Cuts and Jobs Act. It’s available for tax years beginning in 2018-2025 to eligible individuals, estates, and trusts that own interests in pass-through entities.
Mr. Bischoff goes into great detail outlining how these will affect pass-through entities such as a sole proprietorship, partnerships, S-Corporations, and single and multiple member LLC’s. These QBI’s — Qualified Business Income — deductions will require your due diligence in understanding what is and is not allowed to be deducted. As always, consult your preferred tax advisor for your business and personal tax situations.