Boise Idaho Business Guide: 20% Business Income Deduction
To qualify for the new tax reform’s 199A 20% business income deduction you must:
- Have a qualified pass-through business entity.
- If you are a specified service or trade, then you are subject to the fade-in and fade-out.
Defining Terms Pass-thru entities and structures include:
- Sole proprietorships (no entity, Schedule C)
- Real estate investors (no entity, Schedule E)
- Disregarded entities (single member LLCs)
- Multi-member LLCs
- Any entity taxed as an S corporation
- Trusts and estates, REITs and qualified cooperatives
Specified Service Trade or Business is defined as:
- Performing artists who perform on stage or in a studio
- Paid athletes
- Anyone who works in the financial services or brokerage industry
This new tax deduction will dramatically decrease your Idaho business income taxes if used.Click for Boise Payroll Service Click to Form an Idaho Business