77 minutes | Nov 10th 2020

Section 199A: how small business owners can skip 20% of their taxes

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#56: This week, I invited CPA Steve Nelson, whose tax blog I’ve followed for years, to chat with us about the details of how Section 199A works and the restrictions around it.199A created a huge new tax break for small business owners, partnerships, real estate investors, and contractors. But there was a lot of uncertainty initially due to seeming ambiguities and loopholes in 199A without clear guidance/regulations to address them.Now, two years later, a lot has become clearer.We discuss:Section 199A overviewWhat counts as Qualified Business IncomeKey rules and restrictions of 199AStrategies for maximizing the 199A deductionHow 199A might alter your retirement contribution strategySpecial considerations for real estate investors (including why a 1031 exchange may no longer make sense with 199A)Special considerations for professional service partnerships (law, medicine, accounting, etc)Special considerations for freelancers and online business ownersWhat happens to 199A after 2025Check it out here:https://hackyourwealth.com/section-199aAre you currently able to avail Section 199A? If so, how has it changed your business operations and/or financial planning considerations, if at all? Let me know by leaving a comment.Don't miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Evergreen Small Business blogHow the final Trump tax bill affects you: analysis for early retireesHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.
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