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Section 199A S Corp Considerations

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Last updated: 24 Nov, 2018
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By Jason Watson ()
Posted November 23, 2018

Section 199A deduction also known as the Qualified Business Income Deduction (QBID) arises from the Tax Cuts & Jobs Act of 2017. This is a significant tax break for small business owners but there are rules and limits of course.

As with any major revision to the tax code, there will be modifications and interpretations which will change how Section 199A can be used for pass-through businesses such as S Corps and partnerships. On August 8, 2018, the IRS releases Proposed Regulations 1.199A that introduced new definitions, procedures and restrictions. Here is a quick list links to various things that we’ve put together for Section 199A enthusiasts-


Section 199A Main Web Page


Section 199A Updated (after proposed regs)


Section 199A FAQs


Section 199A Proposed Regs (1.199A)


Section 199A Tax Return Samples


Section 199A Salary Optimization

Stay tuned to updates as additional guidance is released by visiting our blog-


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Chap 7 - Section 199A Deduction Analysis       Calculating the Qualified Business Income Deduction