Small-business owners look to grab this 20 percent tax break

Small-business owners filing their 2018 taxes may be able to take advantage of a brand-new 20 percent tax break.

One of the new features of the Tax Cuts and Jobs Act is the introduction of the qualified business income deduction, which went into effect last year.

This tax break allows owners of “pass-through” entities, including sole proprietorships, S-corporations and partnerships, to deduct up to 20 percent of their qualified business income.

Don’t get too excited just yet. Business owners and their accountants have been grappling with the deduction for most of 2018, trying to figure out who qualifies.