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Selling Your Business – Watch Out For Effect On 199A Pass-Through Deduction

The provision of the Tax Cuts and Jobs Act that right now is giving the most stress to tax preparers is probably Section 199A also known as the pass-through deduction. Sitting in an RV in a state park in Georgia, I once again am grateful that I retired from doing compliance work.  Not having any current returns to crank out gives me time to think about the effect that 199A might have on deal structuring.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.