20-Second Year-End Tax Planning Quiz For Pre-Retirees
Published Wednesday, November 20, 2019 at: 7:00 AM EST
If you're in your 50s or 60s and own an interest in a business or professional corporation, knowing the answers to these four questions can lower your 2019 federal tax bill sharply, while jumpstarting a tax-advantaged retirement income plan.
1. True/False. S Corps, LLCs, and partnerships are not entitled to the deduction on pass-through income.
2. True/False. Defined benefit plans are ill-advised for income individuals.
3. The deduction on pass-through income is:
b) for business owners, professionals, and sole proprietors
c) key in bracket management
d) All of the above
4. True/False. To qualify for the business owner deduction in 2019, a married couple's adjusted gross income must not exceed $321,400.
Answers: 1-F; 2-F; 3-d; 4-F
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This article was written by a professional financial journalist for Forbes Financial Planning, Inc and is not intended as legal or investment advice.