Hello, the Tax Cuts and Jobs Act of 2017 was enacted on December 22nd, 2017. Now, one of the provisions in the actual Act is something we've never seen before in the entire history of our Revenue Code and tax law. That provision is the qualified business income deduction under section 199C. This provision provides a benefit to pass-through entities, potentially benefiting the owners of those entities. By pass-through entities, I mean entities that are taxed at one level, unlike a C corporation where double taxation occurs. We are specifically referring to sole proprietorships, S corporations, partnerships, and LLCs. Now, let's focus on the actual benefit this provision offers. It could potentially provide a 20% deduction, which is significant. This deduction packs quite a punch. Moving on to the provision itself, it can be quite complex, like navigating a maze. Understanding this provision can be challenging, and that's why I hope this video will help you grasp the concept and rules, as well as provide some examples for better insight on how to utilize the provision. In this video, we will dive into the mechanics of the qualified business income deduction, specifically focusing on the introduction, history, mechanics, and six key situations. Understanding these situations is essential to comprehending the mechanics and basics of the qualified business income deduction, as well as considering other factors. Please note that this video is not intended to be an advanced discussion of the qualified business income deduction. Its purpose is to provide a basic understanding so that you can delve deeper into the specifics for your clients or tax issues. It's important to conduct additional research and analyze the specifics. Now, let's begin with the introduction. Before we discuss the introduction of this deduction, let's clarify some acronyms and terms commonly used throughout this presentation. It's essential to have...
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Revenue ruling 68-57 Form: What You Should Know
Note: I am not sure if it's really necessary to use the word “taxes” in the headline. Also, “taxes” was used instead of “taxation” for a reason, and if I had the time I would have been sure to use that word. As far as taxation on the part of the seller/underwriter/website owner goes, as it applies here, the issue of whether the transaction constitutes an act of taxation is not as black and white as is often portrayed. If the transaction is within the law, if it is for a tax purpose, and if the taxpayer has properly identified any tax consequences, and if the taxpayer's transaction was in compliance with applicable state and local laws, as far as the IRS is concerned, it would not affect whether the purchaser or seller is in compliance with, and the Tax Department would not have any problems with, the Tax Code or Code section. If, however, the transaction is not within the Code's scope, the fact that the transaction was for a taxable amount would have no bearing on whether it is within the IRS's “taxpayer” intent. In this case, the taxpayer would need to demonstrate that the sale is for a taxable purpose, and that the transaction had no tax consequences (under Section 2106) before they believe they would be required to file Form 8806 with the IRS. The fact that the purchase money security interest or mortgage is not in compliance with local law could also have no bearing on whether the transaction is within the “taxpayer” intent. There are some tax consequences of the purchase money security interest when executed by an employer. For example, if the taxpayer is not permitted to sell the security interest to another party, the purchase money security interest can be sold in a taxable sale even if no state recognizes the sale of property as a sale of business income.
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