The New Section 199A 205 Deduction for Qualified Business Income

By on June 11, 2019

Duggan recently wrote an article for the Virginia Bar Association’s Young Lawyer Division Spring 2019 newsletter. The article begins:

Members of, or partners in, a business entity classified as a partnership or S corporation for tax purposes should be aware of the corporate tax rate reduction resulting from the new Section 199A 20 percent deduction for qualified business income. Qualifying trades or businesses that have members or partners providing service for compensation to the eligible entity may be able adjust their governance documents to the benefit of their members or partners. Qualified trades and businesses include all trades and businesses except trades or businesses that perform services as an employee and “specified service” trades or businesses. This latter category includes firms involved in law, accounting, financial services, and several other enumerated fields, or where the business’s principal asset is the reputation or skill of one or more owners or employees.

You can read the full article here. 

 

X