How the 20% pass-through deduction works

This week, Gene Marks tells us it’s late, but it’s not too late to reduce this year’s tax bill. There are still steps you can take, including writing off receivables and inventory and kicking money into a retirement plan. You might even be able to save money on your taxes from previous years if you used the research-and-development tax depreciation. The GOP tax law allows you to go back and retroactively take the full R&D deduction in the first year rather than amortizing it over five years—but check with your accountant. Gene also says that it’s no longer a slam dunk that a pass-through structure is best for smaller businesses—but again, check with your accountant!