What does the new tax law mean for pass-through businesses?
The Tax Cuts and Jobs Act, which went into effect at the beginning of 2018, lowered the corporate tax rate to 21 percent. This causes complications for the owners of pass-through businesses, who may be liable to higher individual rates and who have complex new deduction options under the law.
Alex Raskolnikov, Wilbur H. Friedman Professor of Tax Law at Columbia Law School, discusses potential planning opportunities and compliance issues in the new pass-through provisions.
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