Qualified Business Income Deducton (QBI) – Page 2

Launching a small business? Here are some tax considerations

Business Deductions, Business Expenses, Employees, Qualified Business Income Deducton (QBI), Retirement, Simples, Simplified Employee Pension (SEP), Small Business, Sole Proprietors / Douglas Freeman

While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating with that entity. The pass-through deduction. To the extent your business generates qualified business income […]

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The QBI deduction basics and a year-end tax tip that might help you qualify

Limited Liability Company, LLC, Partnerships, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Sole Proprietors, Tax, Tax Deduction, Tax Planning / Douglas Freeman

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction: Is available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations, as well as

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The next estimated tax deadline is September 16: Do you have to make a payment?

Annualized Income Method, Deductions, Electronic Federal Tax Payment System, Federal Income Tax, Partnerships, Qualified Business Income Deducton (QBI), S Corporation, Self Employment Tax, Shareholder, Sole Proprietors, Tax Deadlines / Douglas Freeman

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The third 2019 estimated tax payment deadline for individuals is Monday, September 16. Even if you do have some withholding from paychecks or payments you receive,

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Which entity is most suitable for your new or existing business?

Business Income Tax, C Corporation, Capital Gains, Income Tax, Limited Liability Company, LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Sole Proprietors, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income tax rates, which apply to sole proprietorships and pass-through entities,

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Many tax-related limits affecting businesses increase for 2019

401 K, Business Income Tax, Contributions, de mimimis Fringe Benefits, Deductions, Donations, HSA, Income Tax, Qualified Business Income Deducton (QBI), Retirement, Simples, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings, Tax-Advantaged Savings / Douglas Freeman

A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have gone up for 2019. Here’s a look at some that may affect you and your business. Deductions. Section 179 expensing:Limit: $1.02 million (up from $1 million) Phaseout: $2.55 million (up from $2.5 million) Income-based phase-ins for certain limits on the

A refresher on major tax law changes for small-business owners

C Corporation, Individual Income Tax, LLC, Partnerships, Past-Through Entities, Personal Service Corporations (PSCs), Qualified Business Income Deducton (QBI), S Corporation, S Corporations, Small Business, Sole Proprietors, Tax Credits, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns

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Assessing the S corp

Compensation, Qualified Business Income Deducton (QBI), Shareholder, Tax, Tax Cuts and Job Acts (TCJA), Tax Planning, Tax Savings / Douglas Freeman

The S corporation business structure offers many advantages, including limited liability for owners and no double taxation (at least at the federal level). But not all businesses are eligible – and, with the new 21% flat income tax rate that now applies to C corporations, S corps may not be quite as attractive as they

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Close-up on the new Qualified Business Income deduction’s wage limit

Business Income Tax, Federal Income Tax, Income Tax, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Tax, Tax Deduction, Tax Savings / Douglas Freeman

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of

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