Back in December, President Donald Trump signed the Tax Cuts and Jobs Act. Congress had included in the act a “20 percent of X” tax deduction for owners of pass-through businesses, and most small businesses owners celebrated.
“This is the first broad brush deduction available only to businesses owners since the inception of the Federal income tax in 1913,” tax attorney Robert Schwartz of Lindabury, McCormick, Estabrook and Cooper, P.C. in Westfield explained recently. Nevertheless, it is complicated; attorneys such as Schwartz expect to spend a lot of time counseling business owners about 2018 tax return positions concerning the deduction.