Question

The revised text of the Tax Cuts and Jobs Act (TCJA) of 2017 provides some support for sole-proprietorships, partnerships and S-corporations, but yet has eliminated certain miscellaneous deductions. Are sole proprietorships, partnerships and S-corporations truly benefitting from the revisions proposed by the TCJA of 2017?

Answer 1

Sole proprietorships, partnerships and S-corporations are benefiting from the revisions proposed by the TCJA of 2017.

As per section 199A owners of sole proprietorship , S-corporations, or partnerships are permitted to deduct upto 20% of the income earned by the business.This is a significant corporate tax cut offered by the Act.