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Understanding 20% Business Income Deduction

One of the most complicated changes in the new Tax Act passed in Dec 2017 was to the taxation of partners and shareholders in pass-through entities such as partnerships, LLC's and S Corps.

I have read many articles which just touch upon the 20% deduction in business income or go into so much depth that my head is spinning.

I found one article in the Journal of Accountancy that gives a setp by step guide to calculating the deduction:

Even so, there are still many moving parts. Thus, I created a summary of the article to help in my understanding of the nuances. I am sharing this with you.

While I am glad to talk you through this article and the pdf I created (please feel free to contact me), by no means am I an expert on this Sec. 199A law. I suggest you seek tax expertise for your particular situation.


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