Top Tax Accountant Pauline Ho CPA Warns Business Owners About the 20% Pass-Through Deduction Filing Deadlines – Winter Park, Orlando, FL

CPA Pauline Ho, founder of Laus Consulting Services, LLC, in Orlando, FL, explains to business owners the benefit of the 20% pass-through deduction and potential problems if they miss the filing deadline. For more information please visit http://lausconsult.com

Orlando, FL, United States – June 28, 2018 /MM-REB/ —

In a recent interview, accountant Pauline Ho, founder of Laus Consulting Services, LLC, in Orlando, FL, explained some of the benefits of the new 20% pass-through deduction and warned business owners about missing filing deadlines.

For more information please visit http://lausconsult.com

Scheduled to go into effect in the upcoming tax season, the qualified business income deduction allows for pass-through entities such as partnerships, S Corporations, and sole proprietorships to deduct up to 20% of their income.

When asked to comment, Ho said, “Everyone wants to know more about the 20% pass-through deduction introduced as part of the new tax code. Small business owners should keep a couple of things in mind when it comes to this new deduction.”

Small business owners, according to Ho, should find out how much they could realistically save from the pass-through deduction – or if they even qualify at all.

“Small business owners who have a high income but don’t pay for W2 wages cannot take advantage of the qualified business income deduction,” she commented.

“It’s vital to note that the deduction stipulates ‘as much as’ 20% of income, meaning that even if a business is eligible, they might not be able to deduct the entire amount. Generally speaking, the more a company makes, the less they can deduct,” Ho said.

Ho said that if a business owner is a single taxpayer who makes more than $207,500 a year, then the most they can deduct is 50% of W2 wages.

Some small business owners who are not eligible for the deduction have been steered by accountants to alter their business structure. However, Po advises caution.

When asked to explain, Ho stated, “Many small businesses have been advised to convert into S corporations to meet eligibility requirements for the qualified business income deduction. This means that the owners will have to file payroll and W2 forms, and to file withhold payroll tax for their employees regularly, which comes with its own risks.”

She added that the IRS has strict payroll tax withholding and W2 filing requirements and deadlines. If not met, the IRS will impose fines and penalties.

“Filing accurately and on time is vital; unaware that incorrectly submitting W2 forms jeopardizes a business owner’s eligibility for the deduction. Consult with a professional before turning your business into an S Corporation to ensure you can meet IRS guidelines,” she commented.

Source: http://RecommendedExperts.biz

Contact Info:
Name: Pauline Ho
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814, USA
Phone: 407-401-9768

For more information, please visit http://lausconsult.com

Source: MM-REB

Release ID: 367641