Comments on: Section 199A Deduction Phase-out Calculations

By: Steve

Steve — Fri, 26 Jan 2018 16:39:32 +0000

I haven’t focused on the agricultural cooperative angle much. Sorry. (I’m surprised, too, to hear that this part of the Section is most controversial, though I believe you…)

I will say this: The statute seems to be pretty friendly to agricultural cooperatives. Also this comment: If you’ve got lots of experience dealing with farmers and ranchers, you will probably get more out of the paragraphs that discuss the agricultural coops than I did.

Sorry I’m not more help.

By: Kent Boadwine

Kent Boadwine — Fri, 26 Jan 2018 07:04:36 +0000

Where do you see the Cooperative issue falling, I deal with a large farm client base and it appears to be the most controversial part on 199A

By: Steve

Steve — Fri, 19 Jan 2018 00:17:47 +0000

In reply to Michael. Yes, because his business isn't a specified service trade or business... and because within those entities he will surely get "credit" for either W-2 wages or depreciable assets.

By: Michael

Michael — Thu, 18 Jan 2018 23:15:54 +0000

Steve
A big deal was made about this law that Trump would benefit personally. Since i assume he would be above the $415,000 level will he still qualify for the 20% deduction?

By: Steve

Steve — Thu, 18 Jan 2018 01:53:03 +0000

In reply to Greg Cecil.

I think it applies. Period.

Some people worry it won’t. But I think it’s pretty clear…

That said, we’ll get clarification from IRS before too long, I think… (In a few months)

By: Greg Cecil

Greg Cecil — Wed, 17 Jan 2018 14:49:39 +0000

Steve,
Have you been able to sort through when the pass-thru deduction applies to different real estate ownership ? Commercial real estate owned and occupied by a business owner, other commercial real estate owned by an individual, taxpayer that owns 100 rental houses, taxpayer that owns one rental house, etc. A BIG thanks for all your insight on the new laws.

By: Steve

Steve — Wed, 17 Jan 2018 12:19:38 +0000

In reply to David Kanter.

Taxable income… not total income… not adjusted gross income. And to be more precise taxable income less any capital gains.

By: David Kanter

David Kanter — Tue, 16 Jan 2018 19:21:44 +0000

Steve – quick question. What is “taxable income”, is that e.g., “Total income” line 22 of a 2016 form 1040, or is it “Taxable income”, line 43 of a 2016 form 1040?