How is QBSE handling the 20% pass through deduction for 2018? I am new to QB/QBSE so a direct answer is so appreciated! Thank you
Welcome to the QBs Community! and it's exciting that you're new to QBs!
You have posted your query on the business discussion boards but this is no problem! I shall get someone to assist you. @JamesDuanT are you able to provide some guidance on this topic?
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Thanks for tagging me in this thread, Jessica.
Any business type (except a C-corporation) potentially qualifies for the 20% pass-through deduction in 2018. It is going to be part of your 2018's 1040 form and may require a form yet to be created by the IRS.
You will qualify if the taxable income on your 1040 form (line 43) and your business profit is under $315,000.00 (Married Filing Jointly) or $157,500 (Single). After that, the deduction is phased out over the next $100,000/$50,000.
Though, you can browse the new 'Qualified Business Income Deduction' online for more information.
In any circumstances, it's not part of your business Profit and Loss, but only after pass-through to your personal return. Then, only if you qualify.
In QuickBooks, your set up must be appropriate for the new tax law. It should be applied automatically. But that doesn't start until your 2018 tax returns (filed early in 2019).
It's best to seek legal advice from professionals or accountants to find out more about the new tax law.
You can always reach out to us if you need help with anything.