Can Please explain new tax plan for pass through biz?

Discussion in 'Economics' started by NY_HOOD, Dec 23, 2017.

  1. Hi guys, happy holliday’s. Im still a bit confused on this new tax plan. I was hoping some of you who may have accounting backgrounds could answer a few questions regarding LLc’s.
    i have a full time construction biz thats an LLc. I live in NY area.
    Here are my questions as an LLC.
    1) i can deduct 20% from my net as an LLC?
    2) i can get the 24k standard deduction as my wife and i file jointly?
    3) i can deduct 2k per child ( i have 3) ?
    4) i can deduct all my business expenses?
    5) i can deduct primary mortgage interest?
    6) i can deduct property taxes up to 10k ?
    7) can i deduct my health insurance premiums since i pay for health ins?
    Are there any other personal deductions for my family?

    I guess my questions are whether as a pass through business( LLc), i can get all of the standard/ personal deductions in conjuction with the 20% deduction from net income as a pass through as well as all my business deductions?

    So far i am at 305k for the year after paying my workers and for my materials. I did not deduct all my other business expenses yet..
    Any clarity would be greatly appreciated.
     
    Last edited: Dec 23, 2017
  2. Taxation is theft
     
    KeLo likes this.
  3. jharmon

    jharmon

    This is a trading forum, not a tax forum. You clearly earn enough money to seek professional advice not opinions.
     
    sss12 and cdcaveman like this.
  4. Sig

    Sig

    Taking advantage of living in a safe prosperous society paid for by taxes while proclaiming taxes as theft is hypocrisy at best, I'd just call it idiocy myself.
     
    qlai, Gambit, dealmaker and 1 other person like this.
  5. Sig

    Sig

    The tax plan doesn't go into effect until the 2018 tax year, it sounds like you're working under the assumption that it impacts you this year?
    In general, your personal deductions are only limited by personal income, not the method by which you earned it, so that answers most of your questions. The 20% deduction for the pass-through depends on the type of business and the amount in W-2 wages you pay out, so you haven't provided enough information to answer that question.
     
    Robert Morse and dealmaker like this.
  6. DaveV

    DaveV

    As someone pointed out, the new tax law takes affect in 2018. What you need to worry about right now is what moves you can make next week to minimize you 2017 taxes. If applicable, go pay prepay your property taxes and state estimated taxes.
     
  7. I am actually referring to 2018 when the tax laws kick in..
     
  8. Overnight

    Overnight

    Well, you have an entire year to consult with a CPA about it. Why not ask them?
     
    jharmon likes this.
  9. newwurldmn

    newwurldmn

    I think the 20percent is on top of the normal deductions you get to take
     
  10. KeLo

    KeLo

    Hmm. I guess the former head of the NY Fed must have been an an idiot too.

    "TAXES FOR REVENUE ARE OBSOLETE"
    by Beardsley Ruml, Chairman of the Federal Reserve Bank of New York

    January, 1946, issue of periodical "American Affairs."
    quote:
    "The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. Two changes of the greatest consequence have occurred in the last twenty-five years which have substantially altered the position of the national state with respect to the financing of its current requirements.

    The first of these changes is the gaining of vast new experience in the management of central banks.

    The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold."


    Mr. Ruml read this paper before the American Bar Association during the last year of World War II.
     
    Last edited: Dec 24, 2017
    #10     Dec 24, 2017