Article Date:
September 2018

Word Count:



How Capital Gains Can Destroy the New 199A 20 Percent Tax Deduction

Will you qualify for the new tax code Section 199A 20 percent tax deduction?


When looking at the possibilities, don’t overlook your capital gains, because they add to your taxable income, which is the primary determinate of your qualification for some, all, or none of the 199A deduction.1


Example. You operate a proprietorship that’s in one of those out-of-favor specified service businesses. You are single with taxable income of $210,000. You don’t qualify for the 199A deduction, because your taxable income is greater than $207,500.


To determine your qualification for the Section 199A tax deduction, you look at your taxable income only. You do not consider ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee