Taxation Law Section
On November 5th, the Estate & Trust and Tax Sections had a well attended joint meeting. We thank Jay Eisenberg for hosting us at Shulman Rogers as well as Trusted Estate Partners for sponsoring the lunch. Special thanks to Mark Schweighofer of Stein Sperling for his informative presentation on Internal Revenue Code Section 199A, Qualified Business Income.
This Section was created by the Tax Cuts and Job Act (TCJA) of 2017 and applies to tax years 2018-2025. In summary, it provides a 20% deduction for non-C corporation qualified business income subject to limitations and phase-out. There are two steps to calculating this deduction. First, determine taxable income and business income without capital gains and losses. Then take 20% of these two sets of income. If the taxpayers' income is under $315,000 for married filing jointly tax returns or $157,500 for other tax returns, the deduction is the lesser of these two 20% calculations.
Section 199A is one of the most important tax law changes from the TCJA and all non-C corporation business owners should speak with their tax professionals soon for 2019 tax planning. Certain steps may need to be taken by business owners to ensure their maximum tax deductions under this new tax law.
The Taxation Section is looking for speakers for the Spring. If you are interested in speaking, please reach out to the co-chairs. We look forward to seeing everyone on the 5th.
If you have any thoughts or comments, please contact either Co-Chair:
If you would like to receive our BAMC Taxation Law Section listserve messages, please contact Cindy at Cindy@barmont.org.