Overview of Federal Taxation of Small Businesses

The Joint Committee on Taxation prepared a report (JCX-10-23) on the current law regarding the federal income taxation of small businesses. This 74-page document points out that the definition of small business can turn on different criteria: gross assets, gross receipts, number of shareholders, number of employees, and outlays/outputs. The criteria for code sections applicable to small businesses are listed in the Appendix. The report also details the qualified business income (QBI) deduction for owners of pass-through entities and some other rules specific to small businesses. #IdeaoftheDay

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