Topic Thread

1.  2018 199A deduction: general contractors

Posted 3 days ago
Folks:
It appears architects and engineers received the 199A deduction in the final version of the 2018 tax legislation, per the recent CFMA presentation.

Do general contractors ("paper gc's", who sub all trades out) get the 199A deduction as well?  Or is this a gray area?

Appreciate your thoughts.

Thanks,

Joe

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Joe Mullen
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2.  RE: 2018 199A deduction: general contractors

Posted 2 days ago
​There is nothing in the law that would limit construction contractors from qualifying for the new 20% of pass through income deduction unless the individual to whom the income passes through has taxable income over the threshold ($315,000 for joint filers) and the greater of their portion of W-2 wages times 50% or 25% of wages and 2.5% of qualified property is less than their qualified business income.

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Daniel Lacey
Clark Schaefer Hackett
Columbus OH
(614) 885-2208
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3.  RE: 2018 199A deduction: general contractors

Posted 2 days ago

Yes, GC's would be considered a "qualified business" for the deduction.

 

Cord

 

Cord D. Armstrong, CPA
CBIZ MHM, LLC | Managing Director

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