Can Form 1120 Reit Entity 2023-2024

Hello. In this video, we will consider the effect of the qualified business income deduction on business entity planning and business entity choice. Now, this video assumes you have basic knowledge of the qualified business income deduction. If you have not yet looked at the qualified business income deduction, I recommend stopping and watching my video on qualified business income deduction basics. That video goes through the basic discussion of the qualified business income deduction. This video is meant to talk about business entity planning as corporations versus LLCs versus C corporations. When we look at business entity choice, the qualified business income deduction makes a difference in that analysis. Whether it's determining between a C corporation and an LLC versus an S corporation, or if you're simply deciding between an LLC and an S corporation because you've eliminated the C corporation as an option. Let's go ahead and talk about entity planning. It's important to remember that when you're looking at entity planning, you've got to remember the basics of the qualified business income deduction. As I mentioned in the mechanics video, I talked about history and the big push for why we have this provision. In a nutshell, the corporate tax rates were reduced dramatically from 35% to 21% under the Tax Cuts and Jobs Act of 2017, starting in 2018. This provision was meant to level the playing field for pass-through flow-through entities. That's the idea. Before the Tax Cuts and Jobs Act of 2017, business entity planning or choice of entity was very basic. It was very rare to find a time when you needed a C corporation. There were some instances where you might consider a C corporation. For example, if you needed to retain earnings and didn't want to worry about the accumulated earnings tax because the...