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Confused over Section 199A business earned income deduction for multi-entity businesses?
(Note this post raises questions but provides no substantive advice or conclusions. My focus in this and most blog posts is the practical effect on my target client group rather than an academic assessment of the law). I gave myself a personal ‘refresher course’ yesterday in re-reading parts of 1.199A-5 and REG-107892-18 , two of the applicable but difficult tax regulations related to the 20% business income deduction. My focus was a situation when a non-incorporated person’s business generates income from both a ‘specified service trade or business’ (SSTBs) and not SSTBs, then: 1) What are the accounting/reporting requirements, and
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Thinking about an S corporation?
Some social media marketers heavily push the tax saving potential of S corporations. Seasoned tax professionals and small business attorneys are not so entheusiastic. This week I was asked about this tax planning approach by two businesses with many similarities. This worksheet estimates the benefits and the costs of each. The conclusion: sometimes an S-corporation is worth consideration as a tax planning tool and sometimes it is not. The National Law Review article mentioned in the video is here: Post-recording note: The video does not discuss the additional ongoing accounting costs or requirements of running a business with an S
