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How does 199A tax deduction affect you?

Author

Wallaces Farmer, Kristine Tidgren, Center for Ag Law and Taxation at Iowa State University.

Published

8/27/2018

Topics:

Taxation

One of the key features of the Tax Cuts and Jobs Act passed in December is the Section 199A deduction. This federal income tax deduction is generally available to sole proprietors, owners of pass-through businesses and trusts.

Because TCJA lowered the highest tax rate for C corporations from 35% to 21%, Congress created the 199A deduction to benefit the rest of U.S. businesses. For more, please click here.

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