Re: 20% pass through deduction (2018 tax act)
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.