Due to a change is federal tax laws, sole proprietors, LLC’s, and S-corporations will be able to deduct 20% of their income from their taxable income. Individuals who earn less than $157,500 or married couples who earn less than $315,000 will qualify. It’s called “pass through” because these types of businesses pass income through the owner’s personal tax return. Be sure to talk to your tax accountant about this important reduction to your tax bill.
Posted in Taxes