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Boise Idaho Business Guide: Get the Facts

To start you off on the right foot you will need to understand how the deduction works in a perfect case scenario to reduce your Boise Idaho business income taxes.

An Idaho business owner can qualify for 199A 20 percent tax deduction with experiencing no major issues if:

  1. You have qualified Idaho business income from a sole proprietorship, partnership, or S-corporation, real estate investments, publicly traded partnerships, real estate investment trusts, and qualified cooperatives which you can apply the 20 percent.
  2. You have “defined taxable income.”
  • $315,000 or less if married filing a joint return, or
  • $157,500 or less if filing as a single taxpayer.

Example

You are single (not married) and operate your Idaho business as one of the qualified business entities above.

Your business takes in $150,000 of qualified business income. Your other miscellaneous income and deductions produce a taxable income of $153,000.

Since the $153,000 is less than the maximum amount of $157,500 if filing as a single taxpayer, you are qualified to deduct the 20% from only your Idaho business income of $150,000.

You qualify for a deduction of $30,000 ($150,000 x 20 percent).

  • If you are confused about why the entire $153,000 was not multiplied by the 20%, it is because while the deduction requires you to add all your income to qualify, the deduction is only on the business income portion.

 

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