Have you ever considered starting your own business in Nevada or elsewhere? The fact is, this is the best time in 30 years to become Self Employed. Besides, what better place to start? A new business in Las Vegas with the best accountant in Las Vegas.
Have you heard of the 199A?
This new benefit started Beginning in tax-year 2018, income derived from a sole proprietorship, LLCs, partnerships, or S Corp are now eligible for a 20% QBI tax break. This Qualified Income Deduction is in addition to the Standard Deduction and other tax deductions you normally receive. The problems is, that not all accountants may be aware of this recent addition. Securing a knowledgable accountant is paramount in ensuring your companies success.
Hows does this new QID work? Say for example you are married and start an LLC that generates $80,000 in Net Taxable Income in Year 1. This $80K of income will qualify for the 199A 20% deduction. So, your taxable income will be reduced to $64K ($80K – $16K) before your standard deduction.
A married couple qualifies for a $24K Standard Deduction every year. So, deducting $24K from your $64K of self-employed income, and then your taxable income is now $40K. You have effectively cut your taxable income in half.
These incentives and more make it a great time to explore self-employment. Kohler Financial can not only help you set up the correct type of corporation for you but by doing it in Nevada, there are a plethora of other tax reliefs available to you!
Call our offices today to see how you and your family can benefit from these new tax incentives.