Tax Guidance Has Arrived!

        Many business owners now have more information to make informed decisions for their Tax Returns. Even during the partial Federal Government shutdown, the IRS had been issuing some guidance and rules regarding this Tax filing Season and how the Tax Cuts and Jobs Act (TCJA) will be applied. Part of that guidance involved a clarified understanding of the 20% pass-through deduction for businesses.

          Shedding light on Section 199A had been a concern for the past few months. There had been theories, but no clear understanding about how it would really work in application. For example, the rules state that income from originating and selling mortgages is eligible for the deduction. However, the purpose of this provision was to give a break to businesses whose owners pay taxes on their personal returns.

          If a taxpayer earns more than the set amount, and they are not classified as a service professional, it becomes very difficult to gain this exemption. The same is true of service professionals as well. Now that the rules have been released, there is more information to use to be able to make informed choices for yourself and your business. Here at Anthony Sykes and Company, we will be happy to show you what your options are at your free consultation.

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