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Tax Tip of the Week | No. 276 | The News Keeps Getting Better! November 12, 2014

Posted by bradstreetblogger in : General, tax changes, Tax Tip, Taxes, Taxes, Uncategorized , trackback

Tax Tip of the Week | Nov 12, 2014 | No. 276 | The News Keeps Getting Better!

A New 75% Tax Deduction in 2014!

Virtually all Ohio small business owners and investors will be eligible for a 75% tax deduction on the first $250,000 of business income when they file their 2014 Ohio tax return.  This is an increase from the 50% deduction they took on their 2013 tax returns.

Eligible businesses are those structured as pass-through entities.  This includes Subchapter S corporations (S-corps), partnerships, sole proprietorships, farmers, rentals, etc.  If the business has multiple owners, each is eligible to claim up to a $187,500 deduction ($250,000 X 75%) on their proportionate share.

If you were scheduled to make a fourth-quarter estimated tax payment to Ohio you should give us a call.  You may be able to reduce or even eliminate this last payment!

As the law reads now, the small business deduction reverts back to 50% for tax years after 2014.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.

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