Christine Hradsky No Comments

Calculating W-2 Wages for Limitations on the QBI Deduction

W-2 Wages

For the new QBI deduction for pass-through entities, the details bring about heavy complexities.

Recently proposed IRS regulation on the new deduction for qualified business income (QBI) provide guidance on how to compute limitations on the deduction based on W-2 wages. As you’ve probably heard, the QBI deduction is complicated, and numerous rules and restrictions apply.

Important note: While new QBI deduction regulation are in proposed form, taxpayers can rely on them until final regulations are issued.  Read more

Christine Hradsky No Comments

IRS Issues Proposed Guidance on Complicated QBI Deduction Rules

QBI Deduction

Here are some key definitions and limitations that will be critical for many business owners to understand as they plan for the rest of the 2018 tax year.

The IRS has finally issued eagerly awaited regulations addressing the new deduction for up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction was a major piece of the Tax Cuts and Jobs Act, which was signed into law last December. Read more