Tax Saving Tips - November 2019
2019 Year-End Strategy Edition 2019 Last-Minute Section 199A Strategies That Reduce Taxes Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review four year-end moves that (a) reduce your income taxes and (b) boost your Section 199A deduction at the same time. First Things First If your taxable income is above $160,700 (or $321,400 on a joint return), then your type of business, wages paid, and property can reduce and/or eliminate your Section 199A tax deduction. If your deduction amount is less than 20 percent of your qualified business income (QBI), then consider using one or more of the strategies described below to increase your Section 199A deduction. 1. Harvest Capital Losses Capital gains add to your taxable income, which is the income that · determines your eligibility for the Section 199A tax deduction, · sets