Pass through business entities (Partnerships,LLC’s,LLP’s, S Corps) are subject to the pass through deduction of 20% of its income limited by its total taxable income & further limited by the greater of 50% of wages or 25% of wages + 2.5% basis in property.
The deduction is available to all pass through conduits with the exception of certain service firms with income above $207,500/ $415,000 & service firms with income between $157,500/315,000 (single filers) & $207,500/ $415,000 ( married filers) in which case the deduction is subject to phaseout.
Sole Proprietorships
October 20, 2023
