Sec. 199A allows businesses to deduct 20% of qualified business income from a qualified trade or business on their taxes.
This deduction should be considered during year-end tax planning to lower income taxes.
However, the amount of the deduction may be limited or eliminated if the business’s taxable income exceeds certain thresholds.
Strategies to maximize the Section 199A deduction include harvesting capital losses, making charitable contributions, and purchasing business assets.
Schedule a free assessment to learn more about how to cut your 2022 taxes by 20% using the Section 199A deduction.