While we frequently have great examples of the value of National Association of REALTORS® membership dues and the real-life impact of RAPAC investments, this year’s results are remarkable.

Thanks to a huge effort from our team in Washington D.C., many of us could save thousands of dollars with a business income tax deduction of 20% this year.

According to the IRS, eligible taxpayers may be able to deduct up to 20% of qualified business income from a business operated as a sole proprietorship, partnership, S corporation, trust or estate.

For taxpayers with a taxable income that exceeds $315,000 for a married couple filing jointly, or $157,500 for all other taxpayers, the deduction could be subject to limitations.

In addition, some taxpayers may also be entitled to a 20% deduction of their combined qualified income-producing real estate and qualified partnership (PTP) income.

Most eligible taxpayers will be able to claim it for the first time when they file their 2018 federal income tax return in 2019.

We’ve shared a short video from our friends at NAR explaining the deduction, but of course you should consult your tax professional before filing your taxes.

 

 

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