Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.
As we shared in a previous blog, The Tax Cuts and Jobs Act, which became law on December 22, 2017, created a new deduction often referred to as the “Section 199A or Pass-Through Deduction.” This allows certain taxpayers to take a personal tax deduction of up to 20% of the “Qualified Business Income” of various businesses and/or investments starting in 2018. Unfortunately, the wording of this new law has created more questions than answers.
The professional tax community, and clients like you, have been waiting for clarification on numerous provisions of, and exceptions to, the new law. On Wednesday, the IRS issued “proposed regulations” in an attempt to answer some of those questions.
The document is almost 200 pages long and will require careful study and professional interpretation. We will be analyzing the new regulations through the lens of how we can help our clients pay less tax. This will take some time as there is a lot of information to digest and there will surely be additional questions and fact patterns that require interpretation.
Once we’ve had time to digest the proposed regulations, we will incorporate this new information and any further IRS guidance into our ongoing efforts to provide proactive tax advice. Should we find anything that will impact your personal situation, we’ll review it with you as part of any year-end tax planning we may do on your behalf.
If you have any specific questions about how this applies to you, feel free to reach out to our tax team. Rest assured we are on it and will do what we can to help you reduce your tax burden.
See Related Blog Posts Regarding the Tax Cuts and Jobs Act:
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