Topic Thread

2018 199A deduction: general contractors

  • 1.  2018 199A deduction: general contractors

    Posted 01-12-2018 09:11
    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 01-13-2018 08:24
    ​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 01-13-2018 12:58

    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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