New Guide Explains How Pass-Through Tax Credit Will Affect Businesses
The nonprofit, nonpartisan Tax Foundation has created a guide for pass-through companies attempting to understand with the Tax Cuts and Jobs Act’s new 20 percent deduction for these entities. The Metals Service Center Institute encourages members set up as pass-through to examine the guide, which walks readers through how each aspect of the new provision works and shows how it would apply to an example business.
The guide also outlines how Congress could make the deduction for simple and easy for American businesses to use.
As a reminder, as set up under last year’s tax reform bill, the pass-through deduction allows taxpayers to exclude up to 20 percent of their pass-through business income from federal income tax. Not everyone is eligible, however, so companies will need to work with their tax advisers to determine eligibility.