Comments on: Pass-through Entity Tax Cut Rules Are Complicated https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/ Actionable Insights from Small Business CPAs Thu, 02 Aug 2018 20:48:33 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Brandon https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4912 Mon, 18 Dec 2017 08:18:18 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4912 In reply to Steve.

My current tax bracket is 25%. Would it save my tax if I smooth the distributions of this year’s profit to next year to qualify for the 20% tax bracket of the new pass-through income rule?

]]> By: Steve https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4906 Sun, 17 Dec 2017 23:57:47 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4906 In reply to Brandon.

Only the K-1 numbers… not the W-2… sorry.

]]> By: Brandon https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4898 Sun, 17 Dec 2017 00:23:24 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4898 Hi Steve, I am the owner/employee of my one-person S Corp. Just a simple question: are both wages and distributions from my S corp pass through income that get tax cut under Trump’s tax reform?

]]> By: Steve https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4798 Sat, 02 Dec 2017 16:37:12 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4798 In reply to John.

I think Sec 1202 (which is where they got the language setting the types of businesses allowed to use deduction) was originally a Clinton-era tax law aimed at encouraging entrepreneurs to start big companies.

Sec 1202 gives these guys a sweet tax break… exclusion of part of their capital gains.

]]> By: John https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4793 Sat, 02 Dec 2017 00:55:29 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4793 >My thinking here? How can a small business with a handful of employees and an active owner or two not reflect a situation where the principal asset is the reputation or skill of the owner or owners?

Yeah, this is what I was thinking. It seems like they had a certain type of business in mind when they wrote that (internet celebrities/YouTubers? I have no idea), but now that it’s written it’s unclear and seems like it leaves the door open for broad interpretation. Which is always a bad thing when it comes to legal code…

]]> By: Bill Simmons https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4792 Sat, 02 Dec 2017 00:31:41 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4792 Excellent job of showing how the silk purse becomes a sow’s ear. 2018 will be a very interesting tax year. Thank you for sharing your insight! Happy holidays to you as well.

]]> By: Kelly https://evergreensmallbusiness.com/pass-through-entity-tax-cut-rules/#comment-4742 Mon, 20 Nov 2017 19:22:25 +0000 http://evergreensmallbusiness.com/?p=6110#comment-4742 Thank you for taking the time to explain this for all the small business owners out there!

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