Tax News

  • New 20% Deduction for Pass-Through Entities

    Starting in 2018, taxpayers are allowed a deduction equal to 20 percent of the lesser of a) their “qualified business income” from partnerships, S corporations, LLCs, and sole proprietorships, or b) their taxable income. The income must be from a domestic business. Therefore, investment income (i.e. interest, dividends, royalties, etc.) does not qualify. Nor do […]

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  • Changes Affecting Businesses

    Below are just a few of the many changes affecting businesses. Corporate Tax Rates Reduced. For tax years beginning after Dec. 31, 2017, the corporate tax rate is a flat 21% rate. This applies to personal service corporations, as well, which are subject to a maximum corporate tax rate of 35% before 2018. Personal service […]

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  • State and Local Tax Deductions Limited

    For tax years 2018 through 2025, the new Act limits deductions for state and local taxes paid by individual taxpayers to $10,000 in a single year. Prior to 2018, these taxes were fully deductible, except where the alternative minimum tax applied, which was often. Under the new rules, the total deduction for state and local […]

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