Spurred by ambiguities in the new tax law, accountants are coming up with novel strategies to help entrepreneurs slash their taxes.
One of the most notable provisions in the Tax Cuts and Jobs Act is a 20 percent deduction for qualified business income from so-called pass-through entities, including S corporations and limited liability companies.
Your taxable income must be below $157,500 if you're single or $315,000 if married and filing jointly, in order to qualify for the full deduction.
Beyond those income caps, however, the law places limits on who can take the break. For instance, entrepreneurs with "service businesses" — including doctors and lawyers — may not be able to grab the deduction if their income is too high.
That's where accountants and entrepreneurs are getting creative, finding ways to help businesses maximize this tax break.
For now, it's the Wild West of tax planning, as the IRS hasn't given much guidance on how to interpret the new law.