News Items

What Business Owners Should Know About the Tax Cut and Jobs Act (TCJA)

Date: 9/26/2018

At Heemer, Klein & Company PLLC, we provide reliable and professional accounting services to residents in Sterling Heights, Warren, Richmond, and throughout Southeast Michigan. In addition to the best in tax preparation and bookkeeping services, our accountants at Heemer, Klein & Company, PLLC offer the latest tax information for individual filers and business owners. Many business owners now benefit from the Qualified Business Income Deduction, which was put in place when the Tax Cuts and Jobs Act (TCJA) was signed into law in 2017. 

tax facts image

Qualified Business Income Deduction (QBID)

Because of the TCJA, business owners can now benefit from the Section 199A Qualified Business Income Deduction (QBID).  This allows sole proprietors as well as partnerships, S corporations and some trusts and estates (pass-through entities) the opportunity to deduct up to 20 percent of their qualified business income.  This deduction is not available for C-corporations or for those providing services as an employee.

As with all new tax laws, there are rules and regulations to know and follow.  The QBID has 2 components:

  1. Qualified Business Income – this component allows for a deduction of 20% of qualified business income for sole proprietors or through a partnership, S-corporation, trust or estate.  This component is subject to limitations based on an individual’s taxable income that entail the type of business being conducted, the amount of W-2 wages paid by the qualified business, and the unadjusted basis of qualified property held by the business.
  2. Real Estate Investment Trust (REIT)/Publicly Traded Partnership (PTP) – This component allows for a 20% deduction of qualified REIT dividends and qualified PTP income.

For a complete list of Facts and Questions regarding this deduction as well as the rules and regulations governing its applicability, please visit the IRS website at the following link:

Contact Heemer, Klein & Company, PLLC for the Very Best in Accounting Services and Tax Preparation

Please feel free to contact us at: (586) 751-6060 in Warren, (586) 727-5145 in Richmond, or (586) 751-1040 in Sterling Heights with any questions you may have on this topic. Or, reach out to us through the contact form on our website.

More Business Tax Articles
Employee Profit SharingEmployee Benefits, Pension, and Profit-Sharing Plans
Tax Cuts and Jobs Act

Aug-25-2022IRS provides broad-based penalty relief for certain 2019 and 2020 returnsJul-27-2022UIA announces new waivers of state, federal overpayment determinationsJun-03-2022Treasury: Fraudsters Using Fake Letters in Collections ScamFeb-17-2022Governor Whitmer Announces Additional $400 Million to Support Businesses, Retain or Create Jobs, and Boost Michigan's EconomyJan-25-2022Here’s how a taxpayer’s custody situation may affect their advance child tax credit paymentsJan-24-2022Top 5 things to remember when filing income tax returns in 2022
Dec-27-2021IRS issues information letters to Advance Child Tax CreditAug-03-2021Advance Child Tax Credit Payments in 2021Aug-03-2021SBA streamlines forgiveness process for most PPP loansMar-19-2021America Rescue Plan Summary Mar-15-2021Treasury Department Begins Sending Economic Impact Payments from the American Rescue Plan to AmericansMar-11-2021American Rescue Plan Act passes with many tax componentsJan-15-2021Two new grant opportunities for Macomb County
Dec-14-2020Special Tax Deduction for Cash Donations to Charities in 2020Dec-11-2020Application for Pure Michigan Small Business Relief Initiative grants goes live on Dec. 15Jul-23-20205 Reasons Borrowers Shouldn’t Rush Their PPP Forgiveness ApplicationsJul-14-2020COVID-19 & The Effect on UnemploymentMar-30-2020COVID-19 Virus Policy UpdateMar-26-2020Stimulus Package / Personal Care Act of 2020Feb-06-2020Changes to 1099's for the 2020 tax yearJan-22-2020Michigan Unemployment NewsJan-21-20202019 Tax GuidesJan-02-20202019 Tax InformationJan-02-2020Important Tax Changes for Individuals in 2019
Dec-09-2019IRS Installment AgreementsNov-08-2019Innocent Spouse ReliefOct-04-2019Small Business Start-Up and Entity Selection/RestructuringSep-11-2019Tax Planning for FranchisesJul-16-2019 Tips for Finding the Right Accountant for Your Taxes
Oct-30-2018The Tax Cuts and Jobs Act of 2017Sep-26-2018What Business Owners Should Know About the Tax Cut and Jobs Act (TCJA)Sep-07-2018Are You Planning to Use Your Tax Refund to Cover Holiday Expenses?Jul-24-2018Heemer, Klein & Company, PLLC Protects Client Data Against Cyberattacks Jun-01-2018Why Most Small Business Owners Should Convert their LLCs and C Corps to S CorporationsMay-18-2018How to Start Tax Preparation for 2019 Right NowJan-08-2018Tax Cuts and Jobs Act
Oct-17-2017Small Business Health Care NewsJan-14-20172017 Standard Mileage Rates
Dec-21-20152015 Tax Extenders (PATH Act) UpdateOct-27-2015Affordable Care Act (Obamacare)Sep-09-2015IRS News and InformationJul-09-2015"Solo"401K" Retirement planMay-26-2015Deducting Losses from a DisasterApr-03-2015Avoid Late Filing PenaltyMar-23-2015Reporting Foreign IncomeMar-19-2015Home Office Tax DeductionMar-06-2015Education Tax CreditsMar-02-2015Small Business Health Care Tax CreditFeb-27-2015Early Retirement DistributionsFeb-26-2015Net Investment Income TaxFeb-24-2015Capital Gains and LossesFeb-09-2015Missing W-2 / Prior year Tax Return CopiesJan-12-20152014 Comprehensive Tax Year In Review
Dec-31-2014Tax Updates 2014May-23-2014Year End Tax Planning -- AMTMay-01-2014Standard Mileage RatesJan-03-2014The 2013 New 3.8% Net Investment Income Tax & Business Tax Breaks
Dec-13-2013The Affordable Care ActJun-01-2013Higher Education Costs Continue to EscalateMay-01-2013Tax Breaks for Families and StudentsApr-01-2013Residency Issues for RetireesMar-01-2013American Taxpayer Relief Act of 2012Jan-01-2013Filing Status Implications