Intuit Community Champion

Had 3 different SE clients come in telling me they need to become an LLC in order to take advantage of the 2018 tax reform QBI deduction

Forum|Forum|7 years ago
January 12, 2019
3 replies
18 views

Everything I'm reading says this is not the case, sole props are considered pass-thru also and are eligible for this just like LLCs.

Am I misunderstanding how it works?

I'm sure CA would love it if all these new LLCs got formed, more $$$ for them!

This topic has been closed for replies.

T

TaxGuyBill

Level 15

I think the Franchise Board is telling that to them.

You are correct, no LLC is needed.

Just-Lisa-Now-

Author

Intuit Community Champion

All of them in these past few days....wondering if some media outlet is passing out incorrect information recently.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

abctax55

Level 15

Maybe there's a new ambulance chaser, er, attorney just opened up near by?

HumanKind... Be Both

abctax55

Level 15

"crap...I thought this was in the lounge. Apologies to all my attorney friends who post here."

HumanKind... Be Both

George4Tacks

Level 15

I am posting one of the pages from this free webinar. It is now available without credit, but watch for others that will give CPE https://www.cpaacademy.org/archived_show/a0D4400000UpQSEEA3

This is a wonder real short version of how the QBI is done.

A friend just did a return for one of those wonderful house flippers that formed a CA LLC. Gross sales price 1.4 mill created an LLC "fee" of $6,800. I don't think the attorney warned them of this aspect.

Answers are easy. Questions are hard!

itonewbie

Level 15

Thanks for sharing, @George4Tacks!

---------------------------------------------------------------------------------Still an AllStar

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