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IRS Issues Proposed Regulations On Section 199A Deduction For Solos & Pass-through Businesses Source: forbes.com - Aug 8, 2018 When Congress tackled tax reform last year, the tax treatment of businesses was front and center. The new tax law permanently lowered the tax rate for corporations to 21% while rates typically remained higher for individual taxpayers (you can see the new individual tax rates here). That scheme would have been problematic for sole proprietors and owners of pass-through businesses, so Congress provided a workaround: A deduction of up to 20% to bring the rate lower. That deduction, called the Section 199A deduction, raised a number of questions. The Internal Revenue Service (IRS) has finally issued proposed regulations for Section 199A (downloads as a pdf) intended to address some of those issues. Category: General Business |
