1. PASS-THROUGH INCOME DEDUCTION
What is in the bill: It has been widely publicized that the bill provides a substantial drop in the tax rate imposed on corporations to 21%. In order to establish a more even playing field between corporations and pass-through entities, the bill proposes a deduction of a partner/shareholder’s allocation of pass-through income from a partnership or S-Corporation. The deduction is set at 20%, but subject to specific limitations.