The Tax Cuts and Jobs Act of 2017 has introduced the new 199A deduction. This is a 20% deduction of business income including sole proprietors, partnerships and S Corporations. There are multiple thresholds and income limits, but with proper planning this deduction is available for most business owners. There are also special deductions for farmers that do business with Co-ops, and investors in REITs and publically traded partnerships. This new deduction is available for 2018 tax returns.
As always, check with the tax professionals at Ketel Thorstenson CPAs for these and other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. KTLLP CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry.