One of the more complex provisions of the Tax Cuts and Jobs Act is the 20% tax deduction on business pass-through income. Chris Hennessey highlights planning strategies to help certain small businesses qualify for the deduction. Business owners may want to contact a tax professional to discuss certain planning opportunities, such as:
- Manage income to stay within the limits for the full deduction
- Establish a retirement plan to reduce taxable income
- Defer business income by timing client billing
We have developed a robust set of resources for financial advisors. Explore our tax center for information and presentations to help with your client conversations.
For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.