The tax reform legislation that was passed in December 2017 significantly reduced the top corporate tax rate that applies to C corporations from 35% to 21%.
In addition, a new deduction was included in the 2017 Tax Reform for individual owners of many pass-through businesses, such as partnerships and S corporations. Where the deduction applies, individual owners can deduct 20% of the qualified business income (QBI) from those businesses. However, there are many qualifications and limitations applicable to this new deduction, and its provisions are complex.
Lenhart Pettit's tax law attorneys can help clients who own pass-through businesses understand these provisions and advise on steps that can be taken to qualify for the benefits of this new deduction.