Businesses benefit from Tax Cuts and Jobs Act

Businesses benefit from Tax Cuts and Jobs Act

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LUBBOCK, Texas - It's tax season and a lot of people are seeing the effects of the 2017 Tax Cuts and Jobs Act, specifically those who qualify for the pass through deduction. The pass through deduction specifically targets business owners including sole proprietors, S corporations, trusts and estates, and business partnerships. 

"More often than not a tax cut often means more economic activity and that more economic activity actually generates more tax revenues for those different governments," Lubbock Economic Development Alliance President and CEO John Osborne said.

Taxable income earned through those businesses qualifies if the income is below $157,500 for an individual or $315,000 for a married couple filing a joint return. Real estate agents in particular can also take advantage of the break.

"Then with real estate agents are able to actually extend that past that, so we don't have that threshold like some of the other pass throughs," Lubbock Association of Realtors President Vanessa Dirks said.

The deductions are helping grow businesses in our area no matter the individual or how wealthy the company is.

"It doesn't distinguish between wealthy or how much wealth you have, what it is distinguishing is the type of company that it is," Osborne said. 

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