Providing tax services for individual, estate, business, and non-profit returns, our team of seasoned professionals assist in understanding regulations and financial strategies to mitigate tax requirements.
To learn more about the new tax regulations
The Tax Cuts and Jobs Act, signed into law on December 22, 2017, created a new provision for the owner of certain business entities. The 20% Pass-Through Entities deduction (Sec. 199A deduction) allows owners of Pass-Through Entities to deduct up to 20% of the income earned by the business.
*Pass-Through Entities: Sole Proprietorships, S Corporations, Partnerships, or LLCs.
However, If your business is a specified service trade or business such as health, law, consulting, and financial services and your taxable income on your personal tax return exceeds certain amounts, you may not have a full 20% deduction. Please see the below chart for ranges of the taxable income and their deduction limits.
| Tax Filing Status | Full 20% deduction | Partial deduction | No deduction |
|---|---|---|---|
| Married Couples | Less then $315,000 | $315,000 – $415,000 | Over $415,000 |
| Other Taxpayers | Less than $157,500 | $157,500 – $207,500 | Over $207,500 |
If you are in the field of health and think you may not get a full deduction, or no deduction may be allowed to you, please call us at 410-719-1000. We can provide a thorough review on your business and personal tax situation and build the optimal tax saving strategies customized for you by offering:
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