New Business Deductions

The IRS just issued guidance on the new business deduction that goes into effect this year.

The deduction allows sole proprietors, partnerships and S corps to write off 20% of their qualified business income (QBI). The IRS issued proposed reliance regulations that explain the operation and calculation of the QBI deduction (also called the pass-through or Section 199A deduction). The tax agency also issued Notice 2018-64 explaining how to calculate the W-2 wage and basis limitations to the deduction.

If you have any questions regarding your business deductions, please contact your local KerberRose accounting expert.

Andrew Cordova

About the Author

Andrew Cordova
Andy desires to build strong relationships with his clients in order to become a trusted and valued business advisor. He has more than twelve years of public accounting experience, providing tax and accounting services to individuals and small to medium size businesses. Services include tax planning, tax preparation, financial statement preparation, payroll and bookkeeping assistance. He also has expertise in tax compliance and reporting requirements of the Affordable Care Act.

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