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    Month: August 2018

    Passthrough Deduction and Service Businesses

    As discussed in an earlier post, on August 8, 2018, the Treasury Department issued proposed regulations regarding the passthrough deduction under §199A, as added by the new tax law, which was enacted on December 22, 2017. The passthrough deduction is not available for specified service businesses, if a taxpayer who owns such a specified service business has income above an applicable threshol...

    W-2 Limit for Passthrough Deduction

    On August 8, 2018, the Treasury Department issued proposed regulations regarding the passthrough deduction under §199A, as added by the new tax law, which was enacted on December 22, 2017. For the W-2 limit, the proposed regulations indicate that W-2 wages paid from each activity must be separately compared to the passthrough deduction for that activity.  Taxpayers with income below an appli...