February Tax Saving Tips
Tax-Saving Tips February 2019 IRS Issues Final Section 199A Regulations and Defines QBI Your ownership of a pass-through trade or business can generate a Section 199A tax deduction of up to 20 percent of your qualified business income (QBI). The C corporation does not generate this deduction, but the proprietorship, partnership, S corporation, and certain trusts, estates, and rental properties do. The tax code says QBI includes the net dollar amount of qualified items of income, gain, deduction, and loss with respect to any qualified trade or business of the taxpayer. Sole Proprietorship QBI The QBI for the sole proprietor begins with your net business profit as shown on your Schedule C. You then adjust that profit as follows: · Subtract the deduction for self-employed health insurance. · Subtract the deduction for one-half of the self-employment tax. · Subtract qualified retirement plan deductions. · Subtract Section