Pass-through deduction planning ideas and considerations:
- 199A: How can you best avoid being caught in the qualified service provider definition?
- Make self-employed retirement plan contributions to further reduce taxable income and potentially increase 199A deduction. Consider bunching itemized deductions to maximize the potential benefit of Section 199A.
- Are your wages from a business you own set at the proper level to maximize the Section 199A deduction?
- Don’t tell the IRS you’re operating a qualified service provider business if you’re not! Watch out for NAICS code disclosures.
- Real estate folks: Remember that you could have NO payroll expense but still benefit from 199A.