What is Section 199A?

At this point it is well known that the Tax Cuts and Jobs Act reduced the top tax rates. It also made provision for up to 20% of Qualified Business Income to be deducted from a Taxpayer’s income tax liability. What is less well known is that the criteria to reach this threshold is found in Section 199A of the Internal Revenue Code, a specific area of the TCJA.

         Since there are rules that govern the subject of Qualified Business Income, this means that not everyone can claim it. It also means that this is not a completely straightforward, cut and dry area of Tax Reform. Certain requirements of businesses and individuals need to be met.  If you have not done so already, please consult a Qualified Tax Professional to see if this provision will impact you in any way.

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