Heres the Trump Tax Loophole Your Accountant Can Blow Wide Open

[pbmus]

New tax law allows 20% deduction for pass-through businesses
Tax pros are devising creative ways to avoid deduction limits
If exploiting a tax loophole is as much an art as a science, then the tax planning profession is poised for a creative renaissance.

The inspiration is the tax law signed by President Donald Trump in December. The patrons are affluent Americans who can afford advice from the nation’s more ingenious accountants, tax lawyers and financial advisers.

And the new medium they’re experimenting with? A 20 percent deduction for so-called pass-through businesses, whose income is taxed on firm-owners’ personal returns.

It’s early days, and the Internal Revenue Service has yet to issue guidance on how to interpret the hastily passed law. That hasn’t stopped tax pros from circulating proposals and riffing on each other’s ideas, as the industry seeks to coalesce around strategies that will save their clients money while standing up to scrutiny by the IRS and judges. Some pass-through owners may be instructed to group together their diverse businesses to minimize their tax bills, while others may be told to split pieces off.

https://www.bloomberg.com/news/articles/2018-02-05/here-s-the-trump-tax-loophole-your-accountant-can-blow-wide-open?utm_campaign=news&utm_medium=bd&utm_source=applenews

[SWBTATTReg]

1. and let the games start! NT

[pbmus]

2. Exactly...

[genxlib]

3. Here is my conspiracy theory

It will become clear to a lot of people that there will be a tax advantage to incorporating yourself and offering yourself on contract.

This will lead to a lot of very ordinary jobs shifting from employee to contract labor.

In the process, companies will offload the need for those pesky benefits, overtime, insurance, etc.

A whole group of Americans will outsource themselves to themselves. It will be beneficial in the short term but will come with drastically less stability and a burdensome shift of responsibility for health insurance in an inflationary market. It will be the gig economy on steroids.

And it will all be intentional. To them, it is a feature, not a flaw.

On the flipside, the breakdown of employer paid health insurance might actually be the impetus for national healthcare.

[SWBTATTReg]

4. Good points and exactly right, I think you are...

best in contracting yourself out / or doing your work as a business (if you can do so). This would be a major benefit that is relatively easy to set up. Why not? The big boys do it, and so why can't you? Cheap to incorporate one's self/one's business (if not already done).

I think health insurance markets are still in a tizzy about the stuff in the 2018 tax law, as well as repeal of mandate in this law. More than likely, more people will lose coverage than not. Seems likely.