Hooray for tax cuts for the rich via pass-through businesses! ….that CREATE JOBS for unemployed US citizens. This avoids an omission of small, owner run businesses which do not qualify for the corporate tax redux from 35% to 21%.
Tax professionals are saying the law is unclear. It strains credibility that you make it seem like you know which ones don’t actually qualify. Please list all the types of business income that are eligible for the pass-through deduction (or list those that are excluded) so I can forward your analysis to the tax professionals so they can revoke their inquiry to clarify the law.
No. As confused pointed out, all that’s happening here is that the Tax Professionals are asking for clarification of what’s eligible for pass-through deductions. Don’t know how anyone (liberal or conservative) can properly do their 2018 taxes without knowing what can legally be deducted.
I am a pass through. Waiting to see exactly how this shakes out for the smaller business. Not jumping to any conclusions.
What I can tell you for sure is that I take out less Fed Income Tax this year the last year from my employees. They do in fact see more money in their pay checks.
sal – I don’t think IJ actively monitors the comment section. They only get involved if someone emails them directly, which I agree Agent should do for his own security.
This may well benefit people with higher incomes, but given the number of people I know who have one modest rental property as part of their retirement strategy rather than totally relying on their 401(k) or savings, I think it will benefit many middle class Americans too.
The provision is so complicated that there is no way the JCT numbers are accurate. An example, if you are a Specified Service Business, essentially personal service such as Accountant, Lawyer, Insurance Agent, etc, the deduction is phased out to ZERO if your joint taxable income exceeds $415,000. So no benefit goes to someone in a Specified Service Business with 500k or 1 million of income.
If you are a capital intensive business or have employees, it is possible for you to get a benefit, but there are some wage and capital limitations. Also, in this case you only get the benefit on your profits, not on what would be your compensation.
Read this and get an idea of how complicated the law is: https://www.kitces.com/blog/pass-through-business-deduction-rules-qualified-business-income-qbi-limits/
The Republican tax law’s new deduction for pass-through businesses, intended to help small businesses, was “ill thought through” and will end up benefiting the wealthy…”
Let’s break this down – something coming from this administration is of course “ill thought through”. That’s why Tramp is ALWAYS saying, “we’ll have to see what happens.”
“…end up benefitting the wealthy…” – Hey, that’s been the Republican way since Ronnie Raygun started destroying our economy. Stinky poor people can have boot strap soup, right?
I suppose you support illegal aliens gaming our system. Hopefully, the tax break will get some wealthy contractor to pay more wages to his employees building the wall.
I don’t support anyone “gaming the system” and that goes for the CEO yacht owners, too. Corporate welfare is by far more of a detriment than the people you hate.
I guess you preferred Obama’s 2% average growth for 8 years. Historically in the years following a recession, you see a rapid increase in GDP growth, something on the order of 4-5%. And Barry had a big “Stimulus” package of $800 billion.
Now, no Democrat will say the word “stimulus” because it was such a failure.
And Odumbo increased taxes on “the rich” 3 times. So why didn’t the economy boom?
Trump is clicking along at 3% growth. (And for you slow learners, 10 years of growth at a 1% greater growth rate produces an economy that is 10% larger – more money for everyone from the private sector.)
Yep, Tramp is certainly benefiting from the momentum President Obama’s economy generated, for sure. Thank GOD President Obama was able to right the ship after Dubya had us steered towards the rocks. Imagine what else President Obama could have accomplished if it weren’t for all the obstruction by the Republicans. Their admitted sole mission was to stand in opposition to anything he attempted to enact and make him a “one term President”. Problem is, America loved him and prospered by him, so we gave him the full 8. Cheers, Craig!
8 years of loser Obama and NOW you try to claim the good economy in 2018 is because of his policies, which have been torn down in chunks by Trump. Goodbye overpriced Obamacare. Goodbye over-regulated American business. Goodbye to corporate taxes that every other country undercut. Goodbye to pussy Obama’s policies towards the thieves in China who stole every business and military secret. Goodbye to illegal immigration that punished working class Americans.
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“This avoids an omission of…”
Tax professionals are saying the law is unclear. It strains credibility that you make it seem like you know which ones don’t actually qualify. Please list all the types of business income that are eligible for the pass-through deduction (or list those that are excluded) so I can forward your analysis to the tax professionals so they can revoke their inquiry to clarify the law.
No. As confused pointed out, all that’s happening here is that the Tax Professionals are asking for clarification of what’s eligible for pass-through deductions. Don’t know how anyone (liberal or conservative) can properly do their 2018 taxes without knowing what can legally be deducted.
I am a pass through. Waiting to see exactly how this shakes out for the smaller business. Not jumping to any conclusions.
What I can tell you for sure is that I take out less Fed Income Tax this year the last year from my employees. They do in fact see more money in their pay checks.
I guess they had to pass it to see whats’ in it…
Uhh…….I think you should ask IJ to remove your post. You posted your email address as your handle. Not a smart move.
IJ–can you please delete the comment above with the email address as his name? Not for the content, but for the safety of the poster.
sal – I don’t think IJ actively monitors the comment section. They only get involved if someone emails them directly, which I agree Agent should do for his own security.
This may well benefit people with higher incomes, but given the number of people I know who have one modest rental property as part of their retirement strategy rather than totally relying on their 401(k) or savings, I think it will benefit many middle class Americans too.
The provision is so complicated that there is no way the JCT numbers are accurate. An example, if you are a Specified Service Business, essentially personal service such as Accountant, Lawyer, Insurance Agent, etc, the deduction is phased out to ZERO if your joint taxable income exceeds $415,000. So no benefit goes to someone in a Specified Service Business with 500k or 1 million of income.
If you are a capital intensive business or have employees, it is possible for you to get a benefit, but there are some wage and capital limitations. Also, in this case you only get the benefit on your profits, not on what would be your compensation.
Read this and get an idea of how complicated the law is: https://www.kitces.com/blog/pass-through-business-deduction-rules-qualified-business-income-qbi-limits/
The Republican tax law’s new deduction for pass-through businesses, intended to help small businesses, was “ill thought through” and will end up benefiting the wealthy…”
Let’s break this down – something coming from this administration is of course “ill thought through”. That’s why Tramp is ALWAYS saying, “we’ll have to see what happens.”
“…end up benefitting the wealthy…” – Hey, that’s been the Republican way since Ronnie Raygun started destroying our economy. Stinky poor people can have boot strap soup, right?
I suppose you support illegal aliens gaming our system. Hopefully, the tax break will get some wealthy contractor to pay more wages to his employees building the wall.
I don’t support anyone “gaming the system” and that goes for the CEO yacht owners, too. Corporate welfare is by far more of a detriment than the people you hate.
I guess you preferred Obama’s 2% average growth for 8 years. Historically in the years following a recession, you see a rapid increase in GDP growth, something on the order of 4-5%. And Barry had a big “Stimulus” package of $800 billion.
Now, no Democrat will say the word “stimulus” because it was such a failure.
And Odumbo increased taxes on “the rich” 3 times. So why didn’t the economy boom?
Trump is clicking along at 3% growth. (And for you slow learners, 10 years of growth at a 1% greater growth rate produces an economy that is 10% larger – more money for everyone from the private sector.)
Yep, Tramp is certainly benefiting from the momentum President Obama’s economy generated, for sure. Thank GOD President Obama was able to right the ship after Dubya had us steered towards the rocks. Imagine what else President Obama could have accomplished if it weren’t for all the obstruction by the Republicans. Their admitted sole mission was to stand in opposition to anything he attempted to enact and make him a “one term President”. Problem is, America loved him and prospered by him, so we gave him the full 8. Cheers, Craig!
8 years of loser Obama and NOW you try to claim the good economy in 2018 is because of his policies, which have been torn down in chunks by Trump. Goodbye overpriced Obamacare. Goodbye over-regulated American business. Goodbye to corporate taxes that every other country undercut. Goodbye to pussy Obama’s policies towards the thieves in China who stole every business and military secret. Goodbye to illegal immigration that punished working class Americans.
Yep. Obama’s policies were awesome.
Here’s a picture of a Pew graph showing whether people think the economy is strong, by party. You are in a cult.
htt ps://mobile.twitter.com/mike_stark/status/978634744257744896/photo/1
That’s exactly right, it wag intended to cut taxes on the rich, the rest is window dressing.
in an article about taxes, in response to a post about tax cuts, you posted about Obama, Iran, Syria, Libya, China & North Korea.
Excellent job staying on topic!! (end sarcasm)