If you are a high earner and not in the out-of-favor specified service trade or business group as explained in Tax Reform Sticks It to Doctors, Lawyers, Athletes, Traders, and Others, you may want to consider operating as an S corporation to qualify for the new Section 199A 20 percent tax deduction.1

If you currently file as a Schedule C taxpayer because you receive 1099s, operate a single-member LLC, or do business as a proprietor, you can qualify for the new 20 percent tax break allowed by tax code Section 199A if your business and taxable income are just right.2

But if your taxable income is too high and you don’t have a payroll or own depreciable property, you could find yourself with a zero deduction from this break unless you create an S corporation. ... Log in to view full article.