Tax legislation enacted in December 2017 introduced a new deduction (Section 199A) available to owners of businesses operated in “flow through” entities, which would include sole proprietorships, S corporations, partnerships, and other entities that are taxed as partnerships for federal income tax purposes, such as LLCs and LLPs. This whitepaper from Merrill Lynch Global Wealth & Investment Management Chief Investment Office summarizes the many definitions, exceptions and limitations under this new statute.
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