{"id":1211,"date":"2018-03-08T02:59:33","date_gmt":"2018-03-08T07:59:33","guid":{"rendered":"https:\/\/directcpa.com\/?p=1211"},"modified":"2018-03-13T18:42:01","modified_gmt":"2018-03-13T23:42:01","slug":"trump-tax-plan-corporate-pass-income-deduction","status":"publish","type":"post","link":"https:\/\/directcpa.com\/pt-br\/trump-tax-plan-corporate-pass-income-deduction\/","title":{"rendered":"Trump Tax Plan – Corporate Pass-Through Income Deduction"},"content":{"rendered":"

\"\"It is been two months since President Trump signed the tax reform bill. The new Tax Cuts and Jobs Act (TCJA) offers some tax saving options for businesses, among others, the tax deduction for owners of pass-through entities. <\/span><\/p>\n

What is Pass-Through Taxation?<\/b><\/p>\n

It is the option that business owners have to be taxed on earnings from their business at individual tax rates. In other words, business owners are able to pay taxes on their earnings derived from their business, as if it will be a personal income tax return. \u00a0It applies to<\/span> partners in partnerships, shareholders in S Corporations, members of Limited Liability Companies, and Sole Proprietors. \u00a0<\/span>Special rules apply to specified agricultural or horticultural cooperatives.<\/span><\/p>\n

The new law, authorizes a deduction of up to 20 percentage for pass-through entities on \u201cqualified business income\u201d, after 2017 and before 2026. \u00a0It also applies to \u201cqualified real estate investment trust\u201d (REIT) dividends, \u201cqualified property\u201d, and \u201cspecial derived trade or business\u201d. So, to understand the restrictions, let\u2019s define important terms.<\/span><\/p>\n

What is Qualified Business Income (QBI)? <\/b><\/p>\n

It is the net income from the business, excluding any amount paid by an S Corporation treated as compensation, any guaranteed payment for services in business, or any amount paid or incurred to a partner for services outside his or her capacity as a partner. \u00a0The QBI is calculated on as per-business basis, instead on a per-taxpayer basis. <\/span><\/p>\n

What is Qualified Property?<\/b><\/p>\n

It is tangible property subject to depreciation and available for use in your business at the end of the tax year. This property must be used to produce \u00a0qualified business income.<\/span><\/p>\n

What is Specified Service Trade or Business?<\/b><\/p>\n

It includes basically every business offering occupational services, EXCEPT engineering and architecture-services including partnership interests, investing and investment management, dealing with securities, or commodities, or any trade or business where the principal asset of such trade is the reputation or skill of one or more of its employees or owners. \u00a0<\/span>Qualified business for specified service trades or businesses phases out as follows:<\/span><\/p>\n