Using Cost Segregation to Maximize the I.R.C. § 199A Pass-Through Deduction
The Tax Cut and Jobs Act (“TCJA”) provides a new deduction for partnerships, LLCs, S corporations and sole proprietorships (in other words, pass-through entities). This deduction can be as much as 20% of Qualified Business Income (“QBI”), which is equivalent to net profit. The benefit will be significant for the owners of most pass-through entities.