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…]

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 writers

Tax Tips for AuthorsWith tax season approaching, I thought it would be a good opportunity to compile five posts from the archives containing tax saving strategies for writers. The first, LLC or S-Corporation? has also been one of our most popular posts, so it seems many are looking for advice as they begin to prepare for filing their taxes.

In the following five posts, Robert M. Pesce, a Partner at Marcum LLP, shares several strategies that writers can employ to save money on their business expenses: [Read more…]

Tax tips for authors: Taking the home office deduction

Robert Pesce

Tax Tips for Authors

Many people believe that taking the home office deduction makes you automatically audited or that it drastically increases your chances of being audited. I don’t think it automatically causes you to be audited, but I do believe that it is something that auditors look at, and it does, I believe, increase the chance of you being audited, albeit still a small chance.
[Read more…]