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A Huge New Tax Deduction for Agents. Most Aren't Aware of Yet
The new 20% passthrough business income deduction is a new deduction most real estate agents qualify for
Example: if net profit on Schedule C is $100,000, you get a new $20,000 deduction NAR did a great video with experts who go over it all. Really worth watching
Before Christmas, I tried to figure out how the new tax reform bill would affect my personal income tax that I would be paying. I was having a difficult time trying to make sense whether or not the 20% business income passthrough deduction would apply to me as a real estate agent. I had read the following and at first glance, it sounded like service providers like Realtors would not be able to take this deduction. Here is the section that details the businesses that don't qualify for this deduction.
"any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees"
I tabled it and figured that it wouldn't pertain to me. But ... more
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