With the year of 2018 drawing to a close, now is an ideal time to review your tax situation and evaluate strategies that may help minimize your tax bill.

Tax law changes constantly. Perhaps the most significant change enacted last December as a part of what is commonly called the Tax Cuts and Jobs Act is Qualified Business Income Deduction. Taxpayers other than corporations may be entitled to a deduction of up to 20% of their Qualified Business Income (QBI) from a qualified trade or business. This deduction can be taken in addition to the standard or itemized deductions.

The deduction is subject to multiple limitations based on the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid with respect to the qualified trade or business, and the unadjusted basis of qualifies property held by the trade or business.

The Qualified Business Income Deduction is a compelling change in how the business income of individuals is taxed. The overall savings could be significant and the best choice will not be the same for everyone. Since the computation of this deduction is quite complex we would like to encourage you to call our office and make an appointment with one of our experts.

Our knowledgeable team is excited to meet the challenge of this tax law change. We look forward to meeting with you and discussing how it applies uniquely to your situation.

Your Godecke Clark Team

Dennis Godecke, CPA
Daniel R. Brush, CPA
Vera Mederos, CPA
Stephanie L. Ruther, CPA