Please provide a well written and formatted memorandum reflecting a professional level of research by the last class meeting on the below subject matter.
Submission of Paper: You will submit to the Professor a hard copy of your paper and post the paper on your respective discussion board using a separate thread labeled: “My Research Project-Your Full Name.” You may post a pdf or clear picture of your flowchart.
SUBJECT: While one of the most significant changes incorporated in the new legislation was reducing the corporate tax rate from the current 35% rate to a 21% rate in 2018, the tax bill also contains a big tax break for small business owners. Unlike large corporations that are taxed at a flat rate, most small businesses are “pass-through” entities, meaning that the profits from the business flow through to the business owner’s personal tax return and then are taxed at ordinary income tax rates.
While pass-through income will continue to be taxed at ordinary income tax rates, many small business owners will be eligible to deduct 20% of their “qualified business income” (QBI) starting in 2018. In other words, some pass-through entities will only be taxes on 80% of their pass-through income.