Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
My favorite tax analyst, Toni Nitti of Forbes, posted this troubling article. Here is the short version:
The Senate version limits the 23% deduction afforded to pass-through entities to the 50% of the wages paid by the business. For passive investors with high cash flow, this means NO deduction in most cases.
Basically, if the Senate version passes, landlords with positive net income will not have any break - in contrast to the tax rate reduction offered in the House version.
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
8y
@Brandon Hall That was my understanding as well. Toni does say this in his article:
[Two notes on this deduction: the wage limitation does not apply if the business owner's income is less than $250,000 (if single, $500,000 if married).
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
8y
@Brandon Hall That was my understanding as well. Toni does say this in his article:
[Two notes on this deduction: the wage limitation does not apply if the business owner's income is less than $250,000 (if single, $500,000 if married).