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New tax law 199A -- small business deduction to exclude 20% of income?

Started by jekamom, December 18, 2018, 05:59:10 AM

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Ok, so why I am ahead of my tax experts in looking at this?  We have 2 S corps.  Have calculated new law allowance limits based on income, w2 wages and real property investments and looks like I will be able to exclude about 24K from taxable income.  Is anyone else familiar with this?

This recent article:

Welcome input!!


If you make less than ~$300k in aggregate, you should not be required to use the W-2 wage limit.  In that case you can probably just assume you will get a deduction for ~20% of your net taxable income flowing through from the S Corp.  Although if you are in the RE business and you are not materially participating, that might not qualify.