Tax Tip of the Week | No. 276 | The News Keeps Getting Better!

Tax Tip of the Week | Nov 12, 2014 | No. 276 | The News Keeps Getting Better!A New 75% Tax Deduction in 2014!

Virtually all Ohio small business owners and investors will be eligible for a 75% tax deduction on the first $250,000 of business income when they file their 2014 Ohio tax return.  This is an increase from the 50% deduction they took on their 2013 tax returns.Eligible businesses are those structured as pass-through entities.  This includes Subchapter S corporations (S-corps), partnerships, sole proprietorships, farmers, rentals, etc.  If the business has multiple owners, each is eligible to claim up to a $187,500 deduction ($250,000 X 75%) on their proportionate share.If you were scheduled to make a fourth-quarter estimated tax payment to Ohio you should give us a call.  You may be able to reduce or even eliminate this last payment!As the law reads now, the small business deduction reverts back to 50% for tax years after 2014.

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Rick Prewitt - the guy behind TTW...until next week.