In case you missed it, here are three things you should know this week...
1.) Final Rules for Small Business Owner's New Tax Deduction Issued by IRSThe IRS has issued final rules for a new deduction providing significant savings for many business owners, more clarity for real-estate owners and service-industry businesses, and cushion for many owners of rental real estate if they meet certain tests.
- "The rules for the new 20% deduction for so-called pass-through businesses—which include partnerships, S corporations and sole proprietorships —will be crucial as business owners begin filing their first returns under the new system in coming months," say Richard Rubin and Ruth Simon in their article for the Wall Street Journal.
- As a part of the 2017 tax overhaul, congress created the pass-through deduction to give a rate cut to businesses that wouldn’t benefit from the cut in the top corporate tax rate.
- "The 20% deduction lowered the top rate on business income that qualifies for the break to 29.6%, from the 37% top rate that applies to individuals’ wage income. The 2017 law reduced the top corporate tax rate to 21% from 35%. The final rules make some changes from proposed regulations released last year," note Rubin and Simon.
- Friday’s rules also offer a cushion for real-estate owners, allowing them to claim the deduction if adequate records are kept, they have at least 250 hours of activity per year on the business, and they avoid leases that make tenants responsible for many expenses.
Rubin, Richard and Simon, Ruth. “New Rules for Business Tax Deduction Are Set.” The Wall Street Journal, 19 Jan. 2019, pp. A2.
2.) Increased Retirement Contribution Limits for 2019A great way to bolster your retirement savings is by contributing to a 401(k), and– good news– you can contribute even more this year thanks to the increase in contribution limits across several retirement plan types.
- Check out the chart below for the updated contribution limits for 2019!
3.) New Year, New Health Trend: Experts Discuss Benefits Celery Juice
Featuring David Ragland
- I am 23 days into my January cleanse and this year I'm trying something new– celery juice. Since adding the nutrient-dense juice to the mix, I've seen many benefits– including less inflammation.
- Some experts aren't as convinced at the effectiveness of the latest health fad. But, while the jury is still out at this point, you can explore the new health craze with these two recent articles and get up to speed on what's going on, and maybe even try it yourself and see if it works for you!