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.
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.