The Tax Cuts and Jobs Act allows owners of a sole proprietor or partnership to deduct up to ________ percent of the income earned by the business from their individual return to arrive at taxable income beginning in 2018.

Question

Quizplus · Accepted Answer

The Tax Cuts and Jobs Act, enacted in December 2017, allows owners of sole proprietorships, partnerships, S corporations, and some trusts and estates to deduct up to 20 percent of their qualified business income from their taxable income, starting in 2018. This provision is designed to reduce the tax burden on small business owners and is known as the Qualified Business Income Deduction (Section 199A).

The Tax Cuts and Jobs Act Allows Owners of a Sole