20% Deduction for Pass-Through Entity Owners and Investors in Real Estate

Included in the “Tax Cuts and Jobs Act” that takes effect for years 2018-2025, is the Section 199A which is known as the 20% Deduction for Pass-Through Entity Owners and Investors in Real Estate.  The following are eligible to take advantage of Section 199A: Sole proprietorships S corporations Partnerships Multiple-member LLCs treated as parnerships Schedule E real estate investors Trust and estates with an interest in a pass-through entity Qualified cooperatives Real estate investment trusts The 20% Deduction works as follows in its most basic form: Deduction is 20% of “qualified business income(QBI) from a partnership, S corporation or sole proprietorship QBI is the net amount of items of income, gain, deduction and loss with respect to a trade or business Business must be conducted within the United States Single individual with taxable income of $157,500 or less and $315,000 or less for Married Filing Joint may take the Section 199A. Above these thresholds the rules become more complicated and not all trades or businesses are eligible to take the Section 199A. If you would like to learn more about this tax strategy, please call Susan at...

2015 Mileage Rates

Beginning Jan. 1, 2015, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:  57.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. You may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.  In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. If you would like to learn more about this tax strategy, please call Susan at...

2013 Mileage Rates

Beginning on Jan. 1, 2013, the standard mileage rates for the use of your car (also vans, pickups or panel trucks) will be: 56.5 cents per mile for business miles driven. 24 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of charitable organizations. The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate. You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. You may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, your business standard mileage rate cannot be used for more than four vehicles used simultaneously. If you would like to learn more about this tax strategy, please call Susan at...