Many individual owners of pass-through entities will get a new 20% deduction. The rules cover sole proprietors and owners of “S” corporation, partnerships, and LLC’s. Real Estate Investments Trusts (REIT) shareholders and partners in publicly traded partnerships also get the break.
They can generally deduct 20% of so-called qualified business income. These provisions are, however, some of the most complex in the new law. There are a lot of limits and restrictions to help deter gaming of the tax system. The break phases out for high earners in professional service fields, such as law, consulting, accounting, health or financial services, with taxable income in excess of $315,000 for joint returns and $157,500 for singles.
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