Authors may be eligible for proposed IRS regulation on 20% deduction for income from pass-through businesses

books and moneyBased on proposed regulations issued by the IRS and Treasury that would add a new provision of the Internal Revenue Code allowing owners of sole proprietorships, S corporations, LLCs, or partnerships a deduction of up to 20% of the income earned by the business, writers will be eligible for the deduction, said Robert Pesce, an accountant with Marcum LLP.

“I read the 184-page Proposed Regulations,” said Pesce. “There is nothing in the regs that excludes authors from the deduction or indicates an author is a SSTB [Specified Service Trade or Business category, which is excluded from the deduction].  [Read more…]

Proposed IRS regulations issued providing guidance on new 20% deduction for flow-through entities

The IRS and Treasury issued proposed regulations providing interim guidance on the new Section 199A 20% deduction on Qualified Business Income (QBI) introduced under the Tax Cuts and Jobs Act. The law contains a series of complex provisions, definitions and computations, many of which are addressed by the Service. The preamble to the regulations provides that taxpayers can rely on this guidance until such time that final regulations are issued.

This new provision of the Internal Revenue Code allows owners of sole proprietorships, S corporations, LLCs, or partnerships a deduction of up to 20% of the income earned by the business. [Read more…]

Taxes and Authors: What you should know

Calculator and penIn his recent TAA webinar, “Taxes and Authors: What You Should Know”, Robert Pesce, a partner at Marcum LLP, shared some important information about the new tax law. He also offered advice on two key questions for tax-conscious authors: 1) What type of entity should you be? and 2) Are you keeping good records on your business deductions? [Read more…]

3/19 TAA Webinar, ‘Taxes and Authors: What You Should Know’

Robert PesceWhile it is understandable that most writers would prefer to concentrate their time on their writing, writing is a business and you need to make sure you’re taking care of all of the tax deductions that you should be.

Join us Monday, March 19 from 3-4 p.m. ET for the TAA Webinar, “Taxes and Authors: What You Should Know”, presented by Robert M. Pesce, a partner with Marcum LLP. [Read more…]

Tax tips for authors: 3 Simple steps to organizing your business expenses

Tax Tips for AuthorsWhile it is understandable that most writers would prefer to concentrate their time on their writing, writing is a business and you will need to spend some time keeping the business of your writing organized and making sure you’re taking care of all of the tax deductions that you should be. The worst way to track your business expenses is to throw everything in a shoebox.

Here are three simple steps to staying organized so that at the end of the year you or your accountant can easily get the information needed for your tax return–from the fewest number of sources–to summarize the income and expenses related to your business. [Read more…]