What income is included in the calculation of the new 20 percent business income deduction? As an independent contractor or sole proprietor, you’re eligible for the deduction—part of the federal Tax Cuts and Jobs Act enacted last year—but do you know whether to take it before or after you account for marketing and other business costs?
The IRS plans to release rules by December on how to apply the tax law changes to your situation. But that won’t help you with your estimated 2018 quarterly tax filings, which are due regardless of where the rules stand. To help you, the National Association of REALTORS® has released a series of videos on what you need to know as a real estate professional.
The videos aren’t a replacement for talking with your accountant or tax adviser. But you can learn about the parts of the law that apply to you as both a practitioner and a homeowner or renter. The videos look at three ways the tax changes can affect you: 1) as an independent contractor or sole proprietor, 2) as a homeowner or renter, and 3) as an individual or joint filer.
Use this index to go directly to the part of the tax law changes you want to learn about.
Impact on Real Estate Professionals
Elimination of business entertainment deduction (1:20)
Addition of 20 percent business income deduction (5:14)
For more on the Impact on Homeownership or Impact on Consumers click the link to the source below.
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