Passthrough taxation

Treasury Releases Pass-through Deduction Regs

Topics: Passthrough taxation, Tax treatment

Treasury released proposed regulations on the Section 199A deduction for pass-through business owners created in the Tax Cuts and Jobs Act. AALU is currently analyzing the 184 pages of proposed regulations. We will provide follow-up analysis and information. H.R. 1 created a 20% deduction on qualified business income for owners of “pass-through businesses,” where income…

In This Week’s Tax News – 18.05.18

Topics: Congress, Passthrough taxation, Tax reform, Tax treatment

Friday, 18 May 2018 Technical implementation and debating the benefits (especially who enjoys the most) are the continuing themes of the tax discussion in D.C. Interestingly, both Republicans and Democrats see their messages on the Tax Cuts and Jobs Act as a winning cocktail for the voters. The IRS’ much anticipated guidance for pass-through businesses…

In This Week’s Tax News – 18.04.27

Topics: Capital gains, Congress, Passthrough taxation, Tax reform, Tax treatment

Friday, 27 April 2018 Republicans continued to discuss additional reforms to the tax code this week, as businesses adjust to the new law and both parties work to message the issue ahead of the midterm elections. Bloomberg Government reported that House Ways and Means Chairman Kevin Brady, commenting on the second round of tax cuts,...

Decoding Tax Reform: Pass-Through Entities Part 1 – The 20% Deduction for Qualified Business Income

Topics: Passthrough taxation, Tax treatment

The new tax reform legislation enacts a 20% income tax deduction based on the “qualified business income” of an owner of a business structured as a sole proprietorship or pass-through entity. If the deduction can be fully utilized, it will result in a marginal rate on qualified business income of 28% for a typical taxpayer…