#small business owners

Veterinary small business owners reap pass-through income tax deduction

Veterinary small business owners reap pass-through income tax deduction

August 15, 2018

The American Veterinary Medical Association reported that veterinary small business owners will be able to take advantage of the new "pass-through" income tax deduction for the salaries they pay themselves. The U.S. Treasury Department and Internal Revenue Service (IRS) last week released proposed regulations detailing how they plan to apply the deduction, which is available to sole proprietorships, partnerships, trusts, and S-corporations under Section 199A of the tax code. The deduction was part of the Tax Cuts and Jobs Act, which was signed by the president in December and takes effect for the current 2018 tax year. According to the IRS and treasury officials, the full pass-through deduction will be available to owners of all small businesses, including veterinary practices, as long as their taxable income does not exceed $315,000 if filing jointly or $157,500 if filing individually. Beyond the stated income thresholds, the regulations would limit the deduction for the owners of certain types of businesses, including veterinarians and other business owners in the "field of health." The limited deduction would apply to veterinary business owners with taxable income between $315,000 and $415,000 if filing jointly, and $157,500 and $207,500 if filing …
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