Tax Cuts and Jobs Act Impact- Guide to Pass Through Entities

The Tax Cuts and Jobs Act is considered the most sweeping tax law change in decades, and for many individuals and businesses the massive and complex changes will have profound impacts. The treatment of pass-through entities is one of the many areas where the new Act promises to fundamentally change the approach to tax planning for many business owners.

The all-new CCH® AnswerConnect: Tax Cuts and Jobs Act Impact - Guide to Pass-Through Entities is focused on the major changes made to the tax rules for pass-through entities, including limited liability companies (LLCs), partnerships, S Corporations and sole proprietorships. Currently, the income from these pass-through entities flows through to the individual owners and is taxed at the individual rate. However, the tax landscape for pass-through entities will change considerably under the new tax law. The CCH Answer Connect Guide on Pass-Through Entites is focused on the major changes made by the Tax Cuts and Jobs Act in the way that business income generated by pass-through entities such as limited liability companies (LLCs), partnerships, S corporations or sole proprietorships is taxed. Under the old law, the net income of these pass-through entities was not taxed at the entity level but was taxed instead by the owners of the business at their individual tax rate. The Tax Cuts and Jobs Act adds a new section to the Code which provides that a non-corporate taxpayer who has qualified business income from a partnership. S corporation or sole proprietorship may be entitled to an additional deduction.

Robert W. Jamison, CPA, Ph.D., resides in Leesburg, Virginia. He is a Professor Emeritus of Accounting at Indiana University Purdue University Indianapolis (IUPUI). In addition to S Corporation Taxation, published annually by Wolters Kluwer, Dr. Jamison has been the author of several courses published by the AICPA, various universities’ extensions and state CPA societies. His professional experience has included employment with universities, and national and local CPA firms. His articles have appeared in the Journal of Passthrough Entities, The Tax Adviser, Journal of S Corporation Taxation, The Journal of Accountancy, Practical Tax Strategies, and various other publications. Professor Jamison has taught many professional education programs for national and local accounting firms and has developed material used in their continuing education programs. He has been a lecturer in AICPA and state CPA societies' programs and has developed and presented training material for several large accounting firms. He is also a coauthor of the 2018 Multistate Tax Guide to Pass-Through Entities, published annually by Wolters Kluwer. He is curator of Wolters Kluwer Answerconnect Topic “S Corporations” and subtopics thereunder. He is a contributing author to National Income Tax Workshop, published annually by Land Grant Universities Tax Education Foundation. He is a member of the AICPA S Corporation Technical Resource Panel and the Washington, DC based S Corporation Study Group.