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@biophase absolutely.
Some background:
The 20% passthrough deduction is only applicable to entities taxed as a passthrough (Sole Proprietorship, Partnerships in all their variations, and S Corporations). The new deduction is 20% of Qualified Business Income, with certain limitations based on the taxpayers total taxable income, W-2 wages paid from the business (in the case of an S Corp), and even occupation.
A C Corp is not a passthrough entity, so earnings from a C Corp are not eligible for the 20% passthrough deduction.
With that said, based on your business and personal goals, you can strike a balance between paying the 21% C Corp rate, and having other business income flow through a passhtrough entity onto your 1040 (which could then be eligible for the 20% deduction). This would be especially helpful if you have contractors do a lot of your work, since your W-2 wages from the S Corp would be low, and could potentially limit the 20% deduction. This threshold starts to phase in at taxable income of $157,500 if single and $315,000 if married filing joint.
One example of where this could be helpful: say I'm an accountant but I have multiple business segments under one company. Since I'm a specified service business (limitation based on occupation), I no longer get the 20% deduction if I am over those thresholds. If, however, I can segment other parts of my business into a C Corp, I may find my taxable income from the theoretical S Corp is lower than the threshold, and I once again am eligible for the 20% deduction.
Some background:
The 20% passthrough deduction is only applicable to entities taxed as a passthrough (Sole Proprietorship, Partnerships in all their variations, and S Corporations). The new deduction is 20% of Qualified Business Income, with certain limitations based on the taxpayers total taxable income, W-2 wages paid from the business (in the case of an S Corp), and even occupation.
A C Corp is not a passthrough entity, so earnings from a C Corp are not eligible for the 20% passthrough deduction.
With that said, based on your business and personal goals, you can strike a balance between paying the 21% C Corp rate, and having other business income flow through a passhtrough entity onto your 1040 (which could then be eligible for the 20% deduction). This would be especially helpful if you have contractors do a lot of your work, since your W-2 wages from the S Corp would be low, and could potentially limit the 20% deduction. This threshold starts to phase in at taxable income of $157,500 if single and $315,000 if married filing joint.
One example of where this could be helpful: say I'm an accountant but I have multiple business segments under one company. Since I'm a specified service business (limitation based on occupation), I no longer get the 20% deduction if I am over those thresholds. If, however, I can segment other parts of my business into a C Corp, I may find my taxable income from the theoretical S Corp is lower than the threshold, and I once again am eligible for the 20% deduction.