This session considers if and when Covid-19 legislation and the QBI deduction have changed our thinking on the choice of entity. This year’s Covid-19 legislation aimed to provide tax relief to businesses suffering from Covid’s stay-in-place orders. The legislation did not change Section 199A and its QBI deduction, but economic disruption may add a complication to our choice of entity considerations.
What factors are important for a new business when choosing its entity structure, and when is it advantageous for the client to make a change? Considering Covid-19: Will there be any qualified business income in 2020? Will it be important to protect the loss flow through to the individual owner’s return? Will there be wages paid to meet QBI's W-2 limits? Will the business be able to buy equipment to help with its QBIA calculation?
How does Covid-19 legislation impact our choice of entity decision?
What factors are important for a new business when choosing its entity structure?
When is it advantageous for the client to make a change?