Planning Briefs

If you're in your 50s or 60s and own an interest in a business or professional corporation, knowing the answers to these four questions can lower your 2019 federal tax bill sharply, while jumpstarting a tax-advantaged retirement income plan.

1. True/False. S Corps, LLCs, and partnerships are not entitled to the deduction on pass-through income.

2. True/False. Defined benefit plans are ill-advised for income individuals.

3. The deduction on pass-through income is:
     a) 20%
     b) for business owners, professionals, and sole proprietors 
     c) key in bracket management 
     d) All of the above

4. True/False. To qualify for the business owner deduction in 2019, a married couple's adjusted gross income must not exceed $321,400.

Answers: 1-F; 2-F; 3-d; 4-F

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