tax deduction Tag

Which Small Businesses Get the 20 Percent Deduction?

When tax reform legislation was signed into law, a 20 percent deduction for owners of a variety of pass-through businesses, including limited liability companies, partnerships, so-called S corporations and sole proprietorships was created. The deduction effectively lowers a small business owner's top rate to 29.6 percent from 37 percent. However, when the legislation passed, there was ambiguity as to which "small businesses" would qualify for the preferential tax treatment. Well, the Treasury Department recently issued guidance that helps bring some clarity to this issue. Those Who Qualify for the 20 Percent Deduction The deduction can be claimed by business owners whose taxable income...

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Do or Don’t – Donor Advised Funds

With the holiday season upon us, many people want to find the best way to give back and donate to charitable causes. A method for giving that is gaining in popularity is donor-advised funds. These are funds created by donors where money, appreciated securities or other assets are deposited, then those funds are distributed to charities over time. Donor-advised funds are on the upswing. In fact, donor-advised fund contributions make up approximately 7 percent of all individual charitable donations. Donations to these funds increased by nearly 24 percent in 2013, according to CNBC.com. If you make a donation to a donor-advised fund,...

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