The Labor Day festivities are behind us, this means that the holiday season is quickly approaching (I can hear Andy Williams' "It's the Most Wonderful Time of the Year" music fading in). If you are a small business owner who hates writing that check to the IRS, this year's tax planning season could be merrier than ever due to the changes brought about with the Tax Cuts and Jobs Act (TCJA). This is the time for ALL small business owners and entrepreneurs to start doing true tax planning.
The TCJA is virtually a once in a lifetime opportunity for smart small businesses to use tax planning in a way that will ensure they don't lose their hard earned dollars. One key area that we have focused on is the Section 199A Qualified Business Income (QBI) rules, paying close attention to the recent developments from the IRS. There has not been this much change in the tax code since 1986 and it is important for small business owners and entrepreneurs to make the most of this opportunity to save money.
One way to save money is to know how to navigate the new Section 199A Qualified Business Income (QBI) rules and we have completed our presentation for small businesses and entrepreneurs. Qualified Business Income is a "new" kind of income that is recognized differently than other types (ordinary, investment, passive) and small businesses need to know how it will affect their bottom line. There is a method to madness behind the change and we take a deeper dive in the presentation. For now check out the video below to get a definition of what QBI is and what income is subject to it.
Join us in the coming months on one of our webinar presentations on QBI and other tax planning topics before tax planning season is in the rear-view mirror.