Optimize the pass-through business tax deduction

Optimize the pass-through business tax deduction

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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