U.S. Treasury finalizes tax rule on pass-through businesses
WASHINGTON (Reuters) - The U.S. Treasury on Friday released final regulations for a tax deduction of up to 20 percent for U.S. businesses organized as so-called pass-through entities, under President Donald Trump's 2017 overhaul of the U.S. tax system.
The 247-page document lays out how to determine the amount of deduction available to the owners of businesses that operate as sole proprietorships, partnerships, S-corporations, trusts and estates.
About 30 million U.S. businesses, including many small "Mom and Pop" firms, are organized as pass-through entities. Rather than operating like corporations with shareholders, as many large companies do, these businesses pass profits through to their owners as personal income.
(Reporting by David Morgan; Editing by Leslie Adler)
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