One of the more complex provisions of the Tax Cuts and Jobs Act is the 20% tax deduction on business pass-through income. Chris Hennessey highlights planning strategies to help certain small businesses qualify for the deduction. Business owners may want to contact a tax professional to discuss certain planning opportunities, such as:
- Manage income to stay within the limits for the full deduction
- Establish a retirement plan to reduce taxable income
- Defer business income by timing client billing
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