Fiduciaries may have an opportunity to take advantage of the new qualified business income
* deductions for qualified business income
under IRC section 199(A); and
This question has entered the spotlight with the qualified business income
(QBI) final regulations issued this year (T.D.
These topics are: (1) Business Assets Expensing; (2) the TCJA's treatment of 529 Accounts; (3) the 30% Business Interest Limitation; (4) the Transition Tax (also referred to as "Deemed Repatriation"); (5) GILTI, or Global Intangible Low-Taxed Income; (6) the elimination of the Personal and Dependency Exemption Deductions; and (7) the Qualified Business Income
Bronnenkant: The biggest change for self-employed individuals starting in 2018 was the new 20 percent qualified business income
At first, federal opportunity zones were widely overlooked as many other tax reform provisions such as the C Corporation rate reduction, the 20 percent qualified business income
deduction and the $10,000 state and local tax deduction limit received national attention.
"If you're a shareholder in a corporation, a partner in a business or a sole proprietor of your own business, there were a lot of changes that would impact your individual tax return," he said, noting that changes in the areas of business interest expenses, qualified business income
deductions and depreciation were particularly onerous.
That section, created by the Tax Cuts and Jobs Act of 2017, offers a 20% deduction for qualified business income
Similarly, the 2018 Form 1040 instructions include a "Qualified Business Income
Deduction--Simplified Worksheet." Many other worksheets in the Form 1040 instructions can be used to incorporate Excel.
In any case, the Qualified Business Income
deduction [which enables certain non-corporate taxpayers to exclude up to 20 percent of their business income from taxation] cushioned the shock for many people.
The eighth edition addresses the special deduction applicable to qualified business income
added by the 2017 legislation.