Jump to content
ATX Community

SIMPLIFICATION - NOT


Max W

Recommended Posts

Here is an article from Forbe's magazine that deals with the 20% Qualified Business Income Deduction.  It's a long read, but provides many examples.  The problem with the QBID is in determining what is qualified income and then later dealing with limitations on W-2 income, exceptions and depreciation.  Hopefully, when the regs are issued some of the confusion will be cleared up, but that's just a hope.

At the end, the suthor states -

"With no regulations, no form instructions, and most unfortunate of all, no one who helped craft the bill or vote on the thing who actually understands what it says, it may be a while before clarity is forthcoming. So for now, I"m all ya' got."

  • Thanks 3
  • Haha 1
Link to comment
Share on other sites

The substantial understatement penalty, as it relates to the 20% passthrough deduction, has a lower threshold also.  That section of the JCTA specifically states that 5% is to be substituted in irc sec 6662 instead of the prescribed 10% for other understatement-related causes. 

  • Thanks 2
Link to comment
Share on other sites

When I was reading the bill I noticed several interested clauses:

1.  If your W-2/W3s are not timely filed, the deduction will be disallowed.

2.  If you have a "Qualified Business Loss", the QBL will be carried forward and will reduce any future QBI.

Fun Times ;)

  • Like 3
Link to comment
Share on other sites

17 minutes ago, cbslee said:

When I was reading the bill I noticed several interested clauses:

1.  If your W-2/W3s are not timely filed, the deduction will be disallowed.

2.  If you have a "Qualified Business Loss", the QBL will be carried forward and will reduce any future QBI.

Fun Times ;)

I can see item 1.  Since the owner controls the W2 submission, and may need those figures as their limit, this actually makes, dare I say it, sense.

  • Like 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...