Tag: pass-through

  • Beware the Ides of March — If You Own a Pass-through Entity

    Beware the Ides of March — If You Own a Pass-through Entity

    Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history Until…

  • Close-up on the New QBI Deduction’s Wage Limit

    Close-up on the New QBI Deduction’s Wage Limit

    The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to non-corporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations, and, typically, limited liability companies (LLCs). It can equal as much as 20% of…