Diamond Head Tax Group can help HONOLULU Small-Business Owners and Self-Employed individuals can claim OAHU Qualified Business Income (QBI) Deductions, a tax deduction that allows individuals to deduct up to 20% of their qualified business income from their taxable income. We will help you determine if it can apply to you and allow you to maximize the benefits of OAHU QBI Deductions.
Get help claiming OAHU QBI Deductions and sort out other tax-related issues at Diamond Head Tax Group OAHU, our tax preparation services in HONOLULU will assist you with all your tax needs.
Diamond Head Tax Group HONOLULU Will Help OAHU Small Business Owners Claim Qualified Business Income (QBI) Deductions - Call: 808-468-8041
Qualified Business Income or QBI is the net amount of income, gain, deduction and loss from any trade or business that you operate as a sole proprietorship, partnership, S corporation, LLC, or trust. This encompasses income from services, property, royalties, rents, interest, dividends, and more. This does not include income not effectively connected with the conduct of trade or business within the United States.
To qualify for QBI Deductions the two main requirements are:
Having pass-through income, which is reported on your personal tax return and not on the tax return of your business entity.
You must have taxable income beyond certain thresholds depending on your filing status and year. For 2022, the thresholds are $170,050 for single filers and $340,100 for joint filers. For 2023, they are $182,100 for single filers and $364,200 for joint filers.
If your taxable income exceeds these you can still qualify for QBI Deduction if your pass-through income meets certain requirements depending on the type of trade or business you have and whether it has special rules or limits.
Claiming QBI Deduction with Diamond Head Tax Group OAHU
Claiming the QBI Deduction requires filling out Form 8995-A or Form 8995, depending on whether you are eligible for the deduction under Section 199A or Section 199A(b). Attaching Schedule C or Schedule C-EZ may be necessary depending on whether your business entity has gross receipts of $25 million or less.
QBI Deduction can be claimed on either Schedule A or Schedule A-C depending on whether you itemize your deductions or take the standard deductions. The maximum amount of QBI that you can deduct is 20% of your qualified business income plus 20% of qualified REIT (Real Estate Investment Trusts) dividends and qualified PTP (Publicly Traded Partnership) income, if applicable.
QBI Deductions are available whether you itemize deductions or take the standard deduction. Diamond Head Tax Group OAHU Tax Filing Experts will help you get the most out of QBI Deductions by helping itemize QBI Deductions to lower your overall tax liability.
How Diamond Head Tax Group Can Maximize QBI Deductions
QBI Deductions can be useful ways to reduce your taxable income and save money on taxes. Strategies that can help maximize its benefits include:
Tracking all receipts and invoices related to trade or business activities to help calculate your Qualified Business Income (QBI) accurately and avoid errors or penalties.
Use Form 8995-A instead of Form 8995 if possible to claim both the QBI component and the REIT/PTP component of the deduction in one form instead of two separate forms.
Claim both Schedule A and Schedule A-C if applicable in order to claim both the standard deduction and the itemized deductions in one form instead of two separate forms. However, this may not be beneficial for everyone, as it depends on overall tax situation and preferences.
Claim the QBI deduction as early as possible as it is subject to a phase-out threshold based on taxable income and filing status. If the taxable income exceeds the phase-out threshold, it may not be possible t claim the full amount of QBI deduction. So it is advisable to claim the QBI deduction before income reaches the phase-out level.
Claim the QBI deduction for all sources of qualified business income as it is not limited to certain types of income or expenses. Any income or expense that is effectively connected with your trade or business can be deducted as long as it meets the definition of qualified business income. Diamond Head Tax Group experts will not exclude any income or expense from your calculation of QBI, even if it seems obvious or irrelevant.
Diamond Head Tax Group OAHU Tax Filing Experts will try to help you claim the QBI deduction for all business entities that you own or control. The QBI deduction applies to any trade or business that you operate as a sole proprietorship, partnership, S corporation, LLC, or trust.
This includes any entity that you own or control directly or indirectly through a partnership agreement, a trust agreement, or a similar arrangement. You should not ignore any income or expense that is reported on the tax return of another entity that you own or control. We will help you keep track of all of these to maximize your QBI Deductions.
Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?
As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
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