The QBI deduction is one of the most exciting components of the Tax Cuts and Jobs Act of 2017 due to its ability to make small businesses competitive with larger enterprises when it comes to accessing tax liability. While we discussed some of the potential benefits and challenges behind the Qualified Business Income (QBI) deduction in a recent blog post due to the complexity of it, we’ve provided more information here.
Most professional service businesses such as law firms, tax practices and other consultancies, many of which operate as unincorporated sole proprietorships, partnerships or limited liability partnerships (LLPs), and utilize a great deal of “intellectual capital” are considered pass-through entities. Such businesses may be able to reduce their effective income tax rate through the Qualified Business Income (QBI) deduction. However, there are limitations that can impact or eliminate a write-off.
To learn more about QBI and read the full article please click here. For more information like this visit: www.easternplanning.com. To schedule a no-obligation appointment or for a referral to a tax professional who can help you determine your QBI eligibility, please contact: / 845-627-8300.