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QBI explained 
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Do I Qualify for the QBI Deduction?
Dear <<First Name>>,

There is a lot of confusion surrounding the new Section 199A Qualified Business Income Deduction. Let’s try to shed light on this new rule.
 
What is QBI?
The qualified business income (QBI) deduction provides a significant opportunity for business owners to cut their federal income tax bill. QBI was designed to lower the effective tax rate on owners of pass-through entities, the write-off can be as much as 20% of QBI. The deduction is based on the amount of your qualified business income. This is essentially your profits from a pass-through trade or business. However, QBI does not include certain items that you do factor into your net income for determining what you pay income tax on. Consider this:
  • A qualified business is any business except those “specified service businesses” and the income earned an employee, from guaranteed payments or personal interest, dividends or capital gains.
  • The specified service businesses include: health, law, accounting, consulting, brokerage services, financial services, and others, but exclude architects and engineers.
     
  • It is available to sole proprietors and owners of pass-through entities such as S-Corps, LLCs, and partnerships.
     
  • It is subject to limitation based on the taxpayer’s income and the type of business.
Find out more how to get the full benefit of QBI!  
Continue reading about QBI
Important Dates & Deadlines!

 

February 11 – Jeanine’s document & meeting deadline
 to guarantee to submit business tax returns (forms 1120S & 1065) by March 14.

March 11 – Jeanine’s document & meeting
deadline in order to guarantee to submit personal (1040) and Corporate (1120) income tax returns by April 14. 

March 15 – S-Corp (1120S) & Partnership (1065) returns due at the IRS.

April 15 – Individual returns (1040) due at the IRS.

April 15 – Corporation returns (1120) due at the IRS.

April 15 – FBAR (Foreign Bank and Financial Account Reporting) due at the IRS.

If you are a business owner and are trying to determine to what extent you qualify for the Section 199A Qualified Business Income Deduction, please contact our office today to schedule a consultation!
Tax Tip!

7 Top Apps for Storing Receipts 
Whether it’s for tax purposes, business expense management, or personal budget interest, these apps can help. Read More 
Earth Day is just around the corner!

One of the biggest events that SABA puts together is the Earth Day event.  It will be held on Saturday, April 27th.  South Austin residents are invited to drop off paint, household batteries, paper and other material for recycling/shredding/safe disposal.
 
If you are interested in volunteering for a SABA cause, you can do your part with the Earth Day committee.  This is a fun committee that does a great job with this huge project.  If you are interested in volunteering or to find out more, please contact Angie Jones at angiejonesrealtor@gmail.com.
Learn more about our services for businesses and individuals.
Contact us today!

Jeanine Hemingway, CPA, PC
(512) 291-9955


Our Services

Business Tax Planning        Bookkeeping/Accounting       Individual Taxes
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Jeanine Hemingway, CPA | 512.291.9955 | jeanine@jeaninecpa.com |
 8700 Manchaca Rd., Ste. #304
Austin, TX 78748


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Jeanine Hemingway CPA · 8700 Manchaca Rd. Ste. 304 · Austin, TX 78748 · USA

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