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Archive for August, 2018

The Tax Cuts and Jobs Act — signed into law on December 22, 2017 — gave birth to a brand new provision: Section 199A, which permits owners of sole proprietorships, S corporations, or partnerships to deduct up to 20% of the income earned by the business. While the provision has the potential to bestow a tremendous benefit upon owners of these pass-through businesses, since its enactment, no one has been able to, well… figure out how the whole thing works. Quite truthfully, the statutory language of Section 199A created more questions than answers, with those queries ranging from the seemingly simple — what do we do about a fiscal year business that crosses over January 1, 2018? — to the much more complex — what exactly is a “specified service business” for which a deduction is generally prohibited?

I’ve spent more than my fair share of time writing and teaching about Section 199A since it’s enactment, and have grown weary of repeating the familiar refrain of WE DON’T KNOW YET each time someone asked a perfectly reasonable question. But that has been the reality.

Until now.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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If you were given the option of magically becoming 23 again — with the catch being that you had to be 23 in today’s world — would you do it? While having a hip that wasn’t slowly turning to dust would certainly be nice, I’d have to pass. The mere possibility that a combination of crippling student loan debt, rising housing prices, and diminishing starting salaries would force me to live with my parents for even one day beyond graduation makes my worsening limp seem not so bad.

Plus, I’m a tax guy. And I can’t imagine having to start my career in tax now. The entire Internal Revenue Code was rewritten as of January 1, 2018, which, in theory, kind of provides a “clean slate” to new professionals. No need to learn all that old stuff now that the new law is in town. But here’s the thing: all that old stuff is still really important, it’s just not there anymore. Making matters worse, the new law was hastily, and as we’re quickly discovering, poorly written, and as a result, trying to chase down answers in today’s Code is akin to being asked to solve the New York Times crossword puzzle, only after all the clues have been re-authored by sleep-deprived third graders.

Think I’m exaggerating? Stick with me.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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