Video instructions and help with filling out and completing Which Form 8815 Deduction

Instructions and Help about Which Form 8815 Deduction

Welcome back to money in life TV everybody how y'all doing out there this is the channel where you can come to to learn about finances investing and taxes we are about to start part two the final part of helping you understand the $1.99 a qualified business income deduction now if you haven't seen the first part make sure you go back and watch that video first I'm gonna leave links in the description section and in the comment section it's very important you watch that first because in the first part of this series it's gonna help you understand the rules and the overall ideas behind this new 20% business tax deduction after you've watched the first part to this series come back to this video and we're gonna look at some calculation examples on screen this excel document that I'm showing you on screen right now has five full step-by-step calculation examples and once you go through these and once we go through these I think the rules part of it is gonna make a lot more sense it's hard to understand the rules by themselves it's hard to understand the calculations by themselves but won't you know both then this deduction starts to make sense so that's how I recommend you learn it so after filming this video and after watching it after taking time to edit it I realized there was points of clarification I needed to add now I just wanna make it very clear that this video is going to help you tremendously understand the deduction but it's not gonna take you all the way I have to be brutally honest the real this stuff is so technical ladies and gentlemen that's the only way you're truly gonna understand it and the best way to learn it is to do some self-study you have to invest some time learning this stuff I can't teach you this in five minutes 10 minutes 15 minutes this is a subject that you need to invest some of your own time and your own self-study to learn so I want to make that clear I really think this video is gonna help you a lot with the understanding of it and so it's part one but I don't want to miss guide you or mislead you you're still gonna have to invest some of your own time to really understand this because I'm not here to BS you but I think you guys will get a lot of this video I've included several sound bites and clarification tips throughout this video and some fun ones as well to keep you guys engaged so I hope you enjoy it let's keep on moving forward so I'm gonna cover three examples with you on screen this video and two of them you can just look at for yourself do some self-study and then we'll go from there so without further ado let's not waste any time let's go ahead and dive right into it let's go ahead and start with example number one an example of one we're looking at an ax taxpayer when their income is below the qbi deduction phase-out ranges which we discussed the last video okay guys chipper has stopped me right here and he's told me if you don't take some time to clarify some of this stuff you're gonna confuse the hell out of people and we don't want to do that so throughout the video as we look at these examples I'm gonna be talking about this qbi income phase-out don't know what does that mean well we're gonna be looking at every example in this video it's gonna be based on a single filing status so chipper is gonna be our example and he's a single filer and so that his key bi-phase out in terms of his taxable income begins at one hundred and fifty-seven thousand five hundred so when I say his income is below the qbi income phase-out it means his income is less than one hundred and fifty seven thousand five hundred if I say his qbi income is in-between the phase-out it means his income is between one hundred fifty seven thousand five hundred and two hundred and seven thousand five hundred if I say his qpi income is above the qvi phase-out it means his taxable income is above two hundred and seven thousand five hundred so I that's what I mean when I'm talking about qbi income phase-out and this chart shows it right here now like I said all the examples are gonna be based on a single filer I did that so for consistency so you don't get confused between one filing status and the other if you're married filing joint there's no difference in the calculation the only difference is that you have a higher qbi income phase-out range so in other words you can your taxable income can be higher before this deduction starts to phase out for you so if you're married filing joint as you can see on the chart your taxable income has to be hit above three hundred fifteen thousand before it even begins to phase out whereas if you're a single filer once your taxable income hits one hundred fifty seven thousand five hundred your deduction starts to become limited beyond that point let's continue this taxpayer has no capital gains and as an important you're gonna see why an example number two so here's the facts of this situation chipper operates as a sole proprietor he files a Schedule C on his tax return chipper manufactures bird cages his bird cages are not considered a specified service business and that's because he's a manufacturer he doesn't provide services he makes it sells bird cages now this is chippers only business and we're gonna discuss multiple business is by the end of this video but let's just focus on one business example of the