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20% deduction on pass-through income in 2018

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  • 20% deduction on pass-through income in 2018

    Tah
    Last edited by stellardoc1; 07-10-2022, 07:42 PM.

  • #2
    For tax purposes, you do not need an LLC. As long as you report income on schedule E, it is potentially eligible for the deduction, subject to the income-based limitations discussed in excruciating depth elsewhere. It is important to note that figuring the deduction is on a "per entity" basis, which means that even if you make >$415k taxable income from doctoring, you can still potentially take the deduction on your rental income, it just would be subject to the "25% W2 wages +2.5% unadjusted basis" limitation. Hope that helps.

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