Big "I" Member Resources Available on New Tax Regulations
Print this Article | Send to Colleague
Big ‘I’ Member Resources Available on New Tax Regulations
By Jennifer Webb
In January, the Internal Revenue Service issued final regulations concerning a new tax deduction for “qualified business income” under Section 199A of the tax code. The Big “I” lobbied aggressively on this regulation as it is critically important for owners and shareholders of insurance agencies and brokerages organized as pass-through entities, such as partnerships and S-corporations.
The rule confirms that agency and brokerage owners and shareholders are eligible for a tax deduction of up to 20 percent on qualified business income — regardless of taxable income level. The new deduction reduces the top effective tax rate on pass-through income to approximately 29 percent from 37 percent. For those in the 24 percent bracket, it can reduce the rate to as low as 19.2 percent.
In response to the regulation, the Big “I” has posted multiple new resources for members on the Big “I” website. Big “I” members must log in to view the materials, which include:
· A recording of the 30-minute webinar the Big “I” hosted last week, for any members who were not able to attend
· A PowerPoint presentation that provides a comprehensive explanation of how the new tax deduction benefits pass-through owners and shareholders, including discussion of the specific sections of the over 200-page regulation relevant to insurance agencies and brokerages
· A one-page overview of the new tax rate for C-corporations and the new tax deduction available to some pass-through businesses
· A four-page FAQ document that outlines the must-know facts about the new 199A deduction
While a major victory Big “I” members, the regulations are complex. The Big “I” encourages members—especially those who derive income from non-traditional activities—to consult a tax professional to determine how the new deduction specifically impacts their businesses.
