The IRS just issued guidance on the new business deduction that goes into effect this year. The deduction allows sole proprietors, partnerships and S corps to write off 20% of their qualified business income (QBI). The IRS issued proposed reliance regulations that explain the operation and calculation of the QBI deduction (also called the pass-through or Section 199A deduction). The tax agency also issued Notice 2018-64 explaining how to calculate the W-2 wage and basis limitations to the deduction. Contact us with questions about your situation.
