20-Second Year-End Tax Planning Quiz For Pre-Retirees
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
This article was written by a veteran financial journalist. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.
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