Dear ,
Recently, Senate Majority Leader, Charles Schumer, has been in the news, angling to finalize the budget reconciliation bill in the final weeks of July or early August 2022.
This budget reconciliation bill will carry various adjustments, but to note is the one seeking to bolster the solvency of Medicare’s hospital fund from 2028 to 2031. And this is how it will affect partnerships and S-Corporation owners:
- Individuals earning more than $400,000 and couples earning more than $500,000 from pass-through entities (PTEs) may be required to pay a 3.8% tax.
This proposed tax will remove the current exemption on the 3.8% net investment income tax (NIIT) that partners or S corporation shareholders with PTE income have been enjoying.
If it goes through, the government will be happy with the additional $203 billion they are likely to raise – but that’s the money they will take from you, PTE owners.
Therefore, you need to start positioning yourself to protect your income and continue paying less taxes. Is this likely going to affect you? Then you should talk to me now so that I take over your tax planning. I will help you keep your money safe from Uncle Sam.
