K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.

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REALTORS® and the Qualified Business Deduction Rule by Tony Smith, Wanda Smith & Associates

February 14, 2019

Unless you’re new to planet Earth, you are aware that tax-time is just around the corner (if you are new to planet Earth, Welcome! Tax time is just around the corner. Please recycle and always tip your server). In January of 2017, a new law regarding business deductions took effect. It’s known as The Qualified Business Deduction Rule. Forbes contributor Tony Nitti explained it better than I can:

The Tax Cuts and Jobs Act -- signed into law on December 22, 2017 — gave birth to a brand new provision: Section 199A, which permits owners of sole proprietorships, S corporations, or partnerships to deduct up to 20% of the income earned by the business. The motivation for the new deduction is clear: to allow these business owners to keep pace with the significant corporate tax cut offered by the Act. (Forbes.com, Editor’s Pick, June 2018) (https://www.forbes.com/sites/anthonynitti/2018/06/20/the-20-pass-through-deduction-where-do-we-stand-now/#1fba5bac4392)

Last year, there was some discussion that this deduction (aka The 20% Pass-Through Deduction), might not be available to REALTORS®. However, thanks to some amazing work by the REALTORS® Political Advocacy Team in DC, the Qualified Business Deduction Rule remains available to Real Estate Brokers and Brokerages across the country. Additionally, the REALTORS® Party
worked tirelessly to insure that property owners’ rights and benefits were preserved.

Be sure to consult your tax professional about the 20% Pass Through Income Deduction and how it can help you. If nothing else, having to worry less about taxes will help you serve both clients and customers better!

For more information on the Tax Reform that impacts REALTORS® and Property Owners visit:

https://www.nar.realtor/tax-reform/the-tax-cuts-and-jobs-act-what-it-means-for-homeowners-and-real-estate-professionals

 

About the Author

 

Tony Smith is a second generation REALTOR® and owner of Wanda Smith & Associates with over twenty-five years handling Real Estate Owned (REO) properties and is proud to represent HUD through KM Minemier & Associates Real Estate Services.  Licensed for 36 years, Tony has been active in leadership in the industry for decades; he is past president of the North Carolina Association of REALTORS® (2015) as well as past president of the Charlotte Regional REALTOR® Association. He is currently a Federal Political Coordinator for the National Association of REALTORS® and Regional Vice-President for the National Association of REALTORS®. Tony is a passionate advocate for both REALTORS® and consumers in today's fast moving real estate market.


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