Arguably the most puzzling provision of the Tax Cuts and Jobs Act is the New IRC Code Section 199a, which allows a 20% write-off of “qualified business income” (QBI) for sole proprietors, owners of S corporations, and members of partnerships/LLCs. How this provision and other elements of the new tax law are implemented will affect business cash flow, operations, and long-term strategy that will impact all business valuations. Duane Morris LLP, a law firm, has prepared a flowchart designed to make sense out of the new QBI deduction. At some point, the IRS will provide meaningful guidance on this and other provisions of the new tax law.
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