Author Topic: Pass-through business deduction  (Read 5418 times)

DavidAnnArbor

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Re: Pass-through business deduction
« Reply #50 on: January 01, 2018, 02:20:44 PM »
Not sure if we qualify for the pass through.
Self employed, sole proprietorship, Schedule C in my name, with all expenses including a line for
contract labor (my wife). Wife has a Schedule C showing her income as the contract labor from my Schedule C.  No employees. Filing jointly.

 Anyone know if we qualify?

 OK, We have no W2 income, we have a retail business and our income is a quarter of the limit.
  So, as you see it, the way we claim our income, Schedule C's, one contract labor is not a problem? (My accountant has been doing it this way for 12 years, someone suggested it should be a partnership)
 Now, if our business income is $75k line 12, our AGI is $70k line 37, and our total income is $100k line 22 from dividends and interest:
 What line does the 20% pass through affect.
 Is it 20% off line 12?
EDIT;
 I'm contemplating Roth coversions for 2018, does that have any bearing on the 20%,
other than allowing me to convert more and stay in the same tax bracket.
                    Thanks

When you're figuring out your 2018 tax return, I'm going to hazard a guess that the 20% is going to be the lesser number, or your line 37 AGI.

BTDretire

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Re: Pass-through business deduction
« Reply #51 on: January 01, 2018, 04:49:23 PM »
Not sure if we qualify for the pass through.
Self employed, sole proprietorship, Schedule C in my name, with all expenses including a line for
contract labor (my wife). Wife has a Schedule C showing her income as the contract labor from my Schedule C.  No employees. Filing jointly.

 Anyone know if we qualify?

 OK, We have no W2 income, we have a retail business and our income is a quarter of the limit.
  So, as you see it, the way we claim our income, Schedule C's, one contract labor is not a problem? (My accountant has been doing it this way for 12 years, someone suggested it should be a partnership)
 Now, if our business income is $75k line 12, our AGI is $70k line 37, and our total income is $100k line 22 from dividends and interest:
 What line does the 20% pass through affect.
 Is it 20% off line 12?
EDIT;
 I'm contemplating Roth coversions for 2018, does that have any bearing on the 20%,
other than allowing me to convert more and stay in the same tax bracket.
                    Thanks

When you're figuring out your 2018 tax return, I'm going to hazard a guess that the 20% is going to be the lesser number, or your line 37 AGI.
I'm sorry, sounds like accountant talk, and I don't understand.
My limited understanding is, Business income, $75k x .20 = $15k, so I use $60k as my business income. Any (personal) dividends, interest, cap gains don't affect the pass through.
 Am I close?

DavidAnnArbor

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Re: Pass-through business deduction
« Reply #52 on: January 01, 2018, 07:15:43 PM »
I'll have to defer this one to SeattleCPA or Seattlecyclone or Maizeman or some other smart people out there.

BTDretire

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Re: Pass-through business deduction
« Reply #53 on: January 06, 2018, 12:25:54 PM »
I'll have to defer this one to SeattleCPA or Seattlecyclone or Maizeman or some other smart people out there.

   It's been a few days, I'm disappointed to find there is no one smarter than you.
 But, congratulations to you!  :-)

tralfamadorian

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Re: Pass-through business deduction
« Reply #54 on: January 06, 2018, 01:57:32 PM »
Not an accountant but I agree with David's assessment. The 20% deduction of your business income is limited to 20% of your AGI. So if you have losses elsewhere, then it will reduce how much of a deduction you can make.

source:
 http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
p.560 example 2

SeattleCPA

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Re: Pass-through business deduction
« Reply #55 on: January 06, 2018, 02:32:46 PM »
I'm sorry, sounds like accountant talk, and I don't understand.
My limited understanding is, Business income, $75k x .20 = $15k, so I use $60k as my business income. Any (personal) dividends, interest, cap gains don't affect the pass through.
 Am I close?

The Sec. 199A deduction equals lesser of 20% of your pass-thru income... or 20% of your taxable income (not AGI... taxable).

Note, too, that if your income gets high enough, other limitations kick in.

Here's the best summary I could do:

https://evergreensmallbusiness.com/pass-thru-income-deduction-dozen-things-every-business-owner-must-know/

My blog Evergreen Small Business
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BTDretire

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Re: Pass-through business deduction
« Reply #56 on: January 06, 2018, 07:35:18 PM »
I'm sorry, sounds like accountant talk, and I don't understand.
My limited understanding is, Business income, $75k x .20 = $15k, so I use $60k as my business income. Any (personal) dividends, interest, cap gains don't affect the pass through.
 Am I close?

The Sec. 199A deduction equals lesser of 20% of your pass-thru income... or 20% of your taxable income (not AGI... taxable).

I suspect I still don't understand, because I would think pass-thru income would be 20% of line 12 on page 2.  Oh... just got it, yes line 39 can be lower than line 12.
  It will help some but I have got my Taxable Income pretty low.
 Thanks, I think I understand for now.
 



Note, too, that if your income gets high enough, other limitations kick in.

Here's the best summary I could do:

https://evergreensmallbusiness.com/pass-thru-income-deduction-dozen-things-every-business-owner-must-know/
[/quote]

DavidAnnArbor

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Re: Pass-through business deduction
« Reply #57 on: January 07, 2018, 06:28:24 AM »
Thanks for the clarification SeattleCPA.  So if you're already getting AGI very low because of all the retirement deductions you take, then when also subtract the increased standard deduction, taxable income gets very very low. Now this pass through business deduction isn't so impressive anymore.

SeattleCPA

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Re: Pass-through business deduction
« Reply #58 on: January 07, 2018, 07:26:35 PM »
Thanks for the clarification SeattleCPA.  So if you're already getting AGI very low because of all the retirement deductions you take, then when also subtract the increased standard deduction, taxable income gets very very low. Now this pass through business deduction isn't so impressive anymore.

No, that's right. It isn't very impressive or high-impact if you've already driven your taxable income to zero.

In the monograph I did for CPAs, I put a little table of how much tax you save per $10,000 of pass-thru income potentially.. and it's $200 to $740. That's potential savings per $10,000 of income.

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Wile E. Coyote

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Re: Pass-through business deduction
« Reply #59 on: January 11, 2018, 03:18:34 PM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

DavidAnnArbor

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Re: Pass-through business deduction
« Reply #60 on: January 11, 2018, 08:18:29 PM »
If you can save more as a sole proprietor, then also think how much less your CPA bill will be now that you won't have to file an 1120 S and do the whole payroll FUTA/SUTA nonsense

SeattleCPA

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Re: Pass-through business deduction
« Reply #61 on: January 12, 2018, 08:17:29 PM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

I've done a lot of analysis of this issue... and if you're saving FICA with an S corporation, the S corporation trumps the Sec. 199A.

More info here... but Sec. 199A doesn't invalidate S corp... they are complementary:

https://evergreensmallbusiness.com/s-corporation-shareholder-salaries-sec-199a-deduction/

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Wile E. Coyote

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Re: Pass-through business deduction
« Reply #62 on: January 12, 2018, 08:42:07 PM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

I've done a lot of analysis of this issue... and if you're saving FICA with an S corporation, the S corporation trumps the Sec. 199A.

More info here... but Sec. 199A doesn't invalidate S corp... they are complementary:

https://evergreensmallbusiness.com/s-corporation-shareholder-salaries-sec-199a-deduction/

You clearly have spent time on this, but I think you missed the point I was trying to make. If you are under 315,000, W-2 wages donít matter, but the S Corporation still has to pay reasonable salary, which reduces QBI.  If reasonable compensation is 150,000 then the amount that you are saving in self employment tax with an S corporation is likely to be much less than the benefit of and additional $150,000 of QBI you would have as a sole proprietor.  I donít see that discussed at your link.

BTDretire

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Re: Pass-through business deduction
« Reply #63 on: January 13, 2018, 10:15:10 AM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

I've done a lot of analysis of this issue... and if you're saving FICA with an S corporation, the S corporation trumps the Sec. 199A.

More info here... but Sec. 199A doesn't invalidate S corp... they are complementary:

https://evergreensmallbusiness.com/s-corporation-shareholder-salaries-sec-199a-deduction/

  All you say is true, but I'm 62 and I'm happy paying more FICA taxes to exclude a few zero years.
I'm haven't calculated the difference, but I was pretty low income most of my life so it will be a greater
increase than if I had been a high income earner. (SS payments are progressive in nature)
 Just throwing it in as another way to think about it.

SeattleCPA

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Re: Pass-through business deduction
« Reply #64 on: January 13, 2018, 04:23:46 PM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

I've done a lot of analysis of this issue... and if you're saving FICA with an S corporation, the S corporation trumps the Sec. 199A.

More info here... but Sec. 199A doesn't invalidate S corp... they are complementary:

https://evergreensmallbusiness.com/s-corporation-shareholder-salaries-sec-199a-deduction/

You clearly have spent time on this, but I think you missed the point I was trying to make. If you are under 315,000, W-2 wages donít matter, but the S Corporation still has to pay reasonable salary, which reduces QBI.  If reasonable compensation is 150,000 then the amount that you are saving in self employment tax with an S corporation is likely to be much less than the benefit of and additional $150,000 of QBI you would have as a sole proprietor.  I donít see that discussed at your link.

Really, one needs to do the math and look at the Sec. 199A deduction one gets at different business income and taxable income levels and different marginal tax rates. And then also at the S corporation tax savings one gets.

In the post I referenced, I was focusing on when and whether an existing S corp benefits by raising W-2 wages. Which wasn't exactly on point. Sorry.

But I did start by noting the simple rule you mention saying this, "For most S corporation shareholders, W-2 wages donít impact the Sec. 199A deduction."

I.e., W-2 wages don't limit Section 199A deduction. I.e., you don't need the wages an S corporation produces. (I thought this was your point. And I agree with that.)

However the math in the example you referenced overstates the benefits of the sole proprietorship... and it understates (possibly) the benefits of the S corporation.

On the face of it, bumping the Sec. 199A deduction from $30K to $60K creates an extra $8400 of tax savings at a marginal rate of 28%. But that probably way overstates the benefit.

For example, if the physician earns $300K in business but family has $100K in deductions so a taxable income of $200K, the Sec 199A deduction doesn't grow from $30K to $60K, it grows from $30K to $40K. ($40K is 20% of the $200K of taxable income.)

Note: I'm thinking of deductions like a 401(k), self-employed health insurance, an HSA, $10K of state and local taxes, mortgage interest, and some charity... Easy to get to $100K this way.

So now the sole proprietorship doesn't add $8400 of savings, it adds 2/3rds of $8400 or roughly $5600. This is roughly the amount of medicare tax the S corporation in your example saves. So this factor alone probably makes the two options similar.

But then there's the salary thing too...

Maybe the physician needs to pay $150K. But maybe not. E.g., maybe physician can pay $80K base wages (which get hit with 15.3% FICA)... but then also $20K of health insurance, $8K of HSA, maybe $27K of employer pension matching (none of which get hit with FICA).. and that compensation package which adds up to $135K is maybe enough. (Maybe it's not... but maybe it is...) And in this case the payroll tax savings compared to earlier example really grow.

Rough calculations suggest that physician S corp with $150K of wages only saves about $5K in medicare taxes.

But rough calculations of the example physician S corp I've described bump that $5K to about $13K.

And now the S corp, even though wages are a not limiter, probably makes sense. S corp option adds $7K to $8K of tax savings.

I think the bottomline here is, we need to work through all the calculations to determine what's best... and one really wants to understand not just Sec. 199A but related chunks of tax law like Subchapter S.

« Last Edit: January 13, 2018, 04:27:47 PM by SeattleCPA »
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DavidAnnArbor

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Re: Pass-through business deduction
« Reply #65 on: January 14, 2018, 06:41:33 AM »
Thanks Seattle for that very clear explanation of why S can really help with taxes.

Wile E. Coyote

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Re: Pass-through business deduction
« Reply #66 on: January 14, 2018, 06:11:16 PM »
One point that I don't hear a lot of people talking about is that S corporations and many partnerships will not do as well as sole proprietors under the new law.  The difference is most dramatic for those smaller businesses whose owners stay the $315,000 taxable income limit.  The new law excludes reasonable compensation and certain payments (including guaranteed payments) made to partners for services rendered.  As an example, let's assume that a doctor operates as an S corporation and earns $300,000.  If we assume that the IRS will accept that $150,000 as "reasonable compensation," the doctor's qualified business income is the remainder of $150,000.  SO the doctor's deduction is no more than $30,000 (other limits apply based on TI).  If we assume the same doctor operates through a single member LLC (treated as a sole proprietor for tax purposes), the doctor's deduction is no more then $60,000 (other limits apply based on TI).  That seems like a strong argument in favor of sole proprietor, and certainly one that would outweigh any potential self-employment tax savings.

I've done a lot of analysis of this issue... and if you're saving FICA with an S corporation, the S corporation trumps the Sec. 199A.

More info here... but Sec. 199A doesn't invalidate S corp... they are complementary:

https://evergreensmallbusiness.com/s-corporation-shareholder-salaries-sec-199a-deduction/

You clearly have spent time on this, but I think you missed the point I was trying to make. If you are under 315,000, W-2 wages donít matter, but the S Corporation still has to pay reasonable salary, which reduces QBI.  If reasonable compensation is 150,000 then the amount that you are saving in self employment tax with an S corporation is likely to be much less than the benefit of and additional $150,000 of QBI you would have as a sole proprietor.  I donít see that discussed at your link.

Really, one needs to do the math and look at the Sec. 199A deduction one gets at different business income and taxable income levels and different marginal tax rates. And then also at the S corporation tax savings one gets.

In the post I referenced, I was focusing on when and whether an existing S corp benefits by raising W-2 wages. Which wasn't exactly on point. Sorry.

But I did start by noting the simple rule you mention saying this, "For most S corporation shareholders, W-2 wages donít impact the Sec. 199A deduction."

I.e., W-2 wages don't limit Section 199A deduction. I.e., you don't need the wages an S corporation produces. (I thought this was your point. And I agree with that.)

However the math in the example you referenced overstates the benefits of the sole proprietorship... and it understates (possibly) the benefits of the S corporation.

On the face of it, bumping the Sec. 199A deduction from $30K to $60K creates an extra $8400 of tax savings at a marginal rate of 28%. But that probably way overstates the benefit.

For example, if the physician earns $300K in business but family has $100K in deductions so a taxable income of $200K, the Sec 199A deduction doesn't grow from $30K to $60K, it grows from $30K to $40K. ($40K is 20% of the $200K of taxable income.)

Note: I'm thinking of deductions like a 401(k), self-employed health insurance, an HSA, $10K of state and local taxes, mortgage interest, and some charity... Easy to get to $100K this way.

So now the sole proprietorship doesn't add $8400 of savings, it adds 2/3rds of $8400 or roughly $5600. This is roughly the amount of medicare tax the S corporation in your example saves. So this factor alone probably makes the two options similar.

But then there's the salary thing too...

Maybe the physician needs to pay $150K. But maybe not. E.g., maybe physician can pay $80K base wages (which get hit with 15.3% FICA)... but then also $20K of health insurance, $8K of HSA, maybe $27K of employer pension matching (none of which get hit with FICA).. and that compensation package which adds up to $135K is maybe enough. (Maybe it's not... but maybe it is...) And in this case the payroll tax savings compared to earlier example really grow.

Rough calculations suggest that physician S corp with $150K of wages only saves about $5K in medicare taxes.

But rough calculations of the example physician S corp I've described bump that $5K to about $13K.

And now the S corp, even though wages are a not limiter, probably makes sense. S corp option adds $7K to $8K of tax savings.

I think the bottomline here is, we need to work through all the calculations to determine what's best... and one really wants to understand not just Sec. 199A but related chunks of tax law like Subchapter S.

I certainly agree that you need to do the calculations, but adding new assumptions do not negate the fact that a sole proprietor's QBI does not need to be reduced by reasonable compensation, but an S corporation's does.  That really is the whole point of my post.  Your new assumptions about deductions go away if we further assume that the doctor also has other sources of passive taxable income that offset those deductions.  It is a difference that nobody seems to be paying attention to, so I simply thought I would mention it.

SeattleCPA

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Re: Pass-through business deduction
« Reply #67 on: January 15, 2018, 06:45:27 AM »
I certainly agree that you need to do the calculations, but adding new assumptions do not negate the fact that a sole proprietor's QBI does not need to be reduced by reasonable compensation, but an S corporation's does.  That really is the whole point of my post.  Your new assumptions about deductions go away if we further assume that the doctor also has other sources of passive taxable income that offset those deductions.  It is a difference that nobody seems to be paying attention to, so I simply thought I would mention it.

I think we largely agree.

BTW, one of the points in your very first post about this is also important... the way guaranteed payments in partnerships dial down QBI too.

I've been blogging about Sec 199A for more than a month and I've tried to highlight this issue. E.g., in a December 2 post, Sec. 199A Qualified Business Income Deduction: Big Savings for Small Business I made this point,

First of all, the Sec. 199A qualified business income amount does not include reasonable compensation paid to S corporation shareholders nor does it include guaranteed payments paid to partners.

And then of course other types of income a small business earns also don't count. Like income earned outside the U.S. And probably any part of the Sec. 1231 gains treated as capital gains. And maybe when the regs come out we'll find other tweaks we need to make. (Pensions? Self-employed health insurannce?)

Dissolving an S corporation that already exists (in an attempt to boost QBI) creates other issues. I doubt that'll very often make sense.

But as you note, Wile, incorporating a sole proprietorship and forming an S corporation, which converts some QBI to wages, doesn't necessarily make sense either.

I don't know about anybody else, but the Sec. 199A deduction seems to be me to offer not only great opportunity to some small businesses and investors but also a new, increased level of complexity to small business choice of entity and owner compensation decisions.

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Laserjet3051

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Re: Pass-through business deduction
« Reply #68 on: January 15, 2018, 10:33:10 AM »
I'd just like to thank SeattleCPA for his discussions and insight into the issues discussed in this thread. In addition to his very useful blog articles, I came across a paper by the Watson Group that goes through many of the issues discussed here and presents a number of case studies each of which has different circumstances/income levels/business structures. I found it extremely insightful, especially as it presents real world situations to the new regs;

https://www.watsoncpagroup.com/Section199A.pdf


Peter Gibbons

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Re: Pass-through business deduction
« Reply #69 on: March 29, 2018, 12:57:26 PM »
Not sure if I will be able to take this deduction.  I have a sole proprietorship LLC.  I am an Engineering Consultant (Mechanical Engineering).

I see consultants are excluded, but engineers are not excluded -- so what does that mean for an engineering consultant ???
 
MFJ.  Expected business income from sole proprietorship (Engineering Consultant)  is ~$60k
Wife's W2 wages ~ $12k.



SeattleCPA

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Re: Pass-through business deduction
« Reply #70 on: March 29, 2018, 01:17:10 PM »
Not sure if I will be able to take this deduction.  I have a sole proprietorship LLC.  I am an Engineering Consultant (Mechanical Engineering).

I see consultants are excluded, but engineers are not excluded -- so what does that mean for an engineering consultant ???
 
MFJ.  Expected business income from sole proprietorship (Engineering Consultant)  is ~$60k
Wife's W2 wages ~ $12k.

You will be able to take it. Your deduction will equal 20% of the lessor of your $60K or basically the taxable income shown on your 1040.
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terran

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Re: Pass-through business deduction
« Reply #71 on: March 29, 2018, 01:51:28 PM »
Not sure if I will be able to take this deduction.  I have a sole proprietorship LLC.  I am an Engineering Consultant (Mechanical Engineering).

I see consultants are excluded, but engineers are not excluded -- so what does that mean for an engineering consultant ???
 
MFJ.  Expected business income from sole proprietorship (Engineering Consultant)  is ~$60k
Wife's W2 wages ~ $12k.

Whether or not the engineering exception applies, it sounds like you're well within the income limit where the exclusions don't matter.

Peter Gibbons

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Re: Pass-through business deduction
« Reply #72 on: March 29, 2018, 01:57:53 PM »
SeattleCPA & terran; Thanks for the quick replies!

neo von retorch

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Re: Pass-through business deduction
« Reply #73 on: March 29, 2018, 02:07:40 PM »
@TaronM - I dig your Estimated Taxes Worksheet. (I just started doing 1099/registered as LLC 6 months ago.) Any chance you've made a 2018 version that takes pass-through into consideration? I tweaked a copy of your 2017 version to have 2018 numbers, but I'm just subtracting 20% from my 1099 income right now to estimate my quarterly taxes...

@SeattleCPA - thank you for your human-readable explanations!

SeattleCPA

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Re: Pass-through business deduction
« Reply #74 on: March 29, 2018, 06:09:28 PM »
@TaronM - I dig your Estimated Taxes Worksheet. (I just started doing 1099/registered as LLC 6 months ago.) Any chance you've made a 2018 version that takes pass-through into consideration? I tweaked a copy of your 2017 version to have 2018 numbers, but I'm just subtracting 20% from my 1099 income right now to estimate my quarterly taxes...

@SeattleCPA - thank you for your human-readable explanations!

:-)
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