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Trump Tax Plan and Pass-Through Tax Cut

Discussion in 'Pathology' started by stickyshift, Apr 26, 2017.

  1. stickyshift

    stickyshift 7+ Year Member

    192
    10
    Jun 16, 2008
    So, if Trump's proposed tax cut for pass-through businesses (like a medical practice structured as an S-corporation) goes through, should private practice partners expect a big windfall? He wants to knock the tax rate of such partners to 15%!
     
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  3. pathstudent

    pathstudent Sound Kapital 10+ Year Member

    2,983
    67
    Mar 17, 2003
    No any well-run practice distributes all money to the partners at the end of year so there is no money left to tax.
     
  4. icpshootyz

    icpshootyz 7+ Year Member

    499
    66
    Sep 17, 2009
    Correct. We pay no business taxes because all of the money not spent on practice expenses, employees, etc is distributed to the partners. We have to "clear the books" by Dec 31st, so December's a really nice month, although then Jan-Mar is pretty light to compensate.
     
  5. pathstudent

    pathstudent Sound Kapital 10+ Year Member

    2,983
    67
    Mar 17, 2003
    RIght because you are double paying SS tax until you earn 127,000 (1 part via the corp and 1 part via the partner), plus it is deductible season collections are slower.
     

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