The Tax Cut and Job Act (TCJA) created a new tax deduction for owners of pass-through entities (Sole Proprietorships, Partnerships, S-corps and LLCs taxed as sole proprietors). These owners can take potentially up to 20% deduction off their Qualified Business Income (QBI). But the rules are complex and at first blush, it appears that owners of specified service companies, such as financial advisors, doctors, consultants and entertainers among others, who are earning high income are excluded and will miss out on the deduction.
With your help, and some basic understanding of how high contribution retirement plans – defined benefit and cash balance plans – can be used, you and your CPA network can save clients tens of thousands of dollars in tax liability and add $100,000+ to their retirement savings each year.
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