Final pass-through rules help some businesses more than others

Summary of the new pass-through rules

A new exclusion or deduction of 20 percent of ‘qualified business income’ will effectively reduce the tax rate on such income by 20 percent. Thus, qualified income otherwise taxed at the top rate of 37 percent will be taxed at 29.6 percent. Self-employment or net investment income taxes, where applicable, would be in addition to these amounts.

Qualified business income would generally include the ordinary, operating income of a trade or business, excluding…

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