Greenberg & Company, LLC, CPAs

 

500 Morris Avenue, Springfield, NJ 07081-1224

Phone: 973-467-3838

Fax:     973-467-3184

May 2019

Passing Through

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The IRS issued final regulations and more guidance for the new qualified business income (QBI) deduction available to some business owners. Also known as the pass-through deduction, this benefit allows many sole proprietors and owners of partnerships, S corporations, trusts and estates and some real estate investment trusts to deduct up to 20% of their QBI on their tax returns.


The QBI deduction is generally available to taxpayers with 2018 taxable income at or below $315,000 for joint returns and $157,500 for other filers. Taxpayers with incomes above these levels may still be eligible for a full or partial deduction subject to limits, including the type of trade or business, the amount of W-2 wages paid in the trade or business and the unadjusted basis immediately after acquisition of a qualified property.


These are among the most complicated of the new tax provisions, so consult your tax professional to learn more.


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