Tackling the new 20 percent small business tax deduction is no simple task, but the IRS is at least trying to make it easier by releasing drafts of the new forms that will be used to file your 2018 tax returns.
If you’re a partner or part owner of a pass-through entity—where you pay income taxes on what you make instead of corporate taxes—you may be eligible for a share of the 20 percent tax deduction. Partnerships and S corporations will be reporting information to owners that they need for figuring their deduction.
A draft of Schedule K-1 for Form 1065 (for partnerships) contains 5 new entries for information related to the new Section 199A deduction.
