ers to be “reasonably compensat- ed” still apply. So, if Tile LLC is a Subchapter-S corporation, Joe would pay himself a reasonable salary of, say, $70,000 and receive a W-2 for that amount, leaving a pass-through profit of $180,000. The 20% QBI deduction would be $36,000. Generally, an estate or trust is also able to deduct up to 20% of business income from a pass-through entity. Yes, it’s complicated. Tax plan- ners are eager to see guidance from the IRS to provide more detail on how this provision will be imple- mented. But with change comes opportu- nity. And the opportunities created by the Tax Cut and Jobs Act of 2017 are indeed significant. While no company should rush headlong into a major restructuring, every com- pany should explore whether their current structure continues to make sense. Almost overnight, we find ourselves in a new environment. Navigating this changed landscape will take skill, and the guidance of a knowledgeable accountant, but it will be well worth the effort. Pat O’Connor is a principal in Kent & O’Connor, Incorporated, a Washington, D.C.-based gov- ernment affairs firm. A veteran of Capitol Hill with particular exper- tise in health, transportation and the environment, O’Connor works with trade associations and com- panies to find workable solutions to the most pressing regulatory and legislative issues. For more informa- tion, visit www.kentoconnor.com or call 202-223-6222. BUSINESS TIP ––––––––––––––––––––––––––––––––––––––––––––––––––––––– High Quality Metal Trims and Pre-Molded Expansion Joints for all of Your Flooring Needs Call or click today! 800.236.5230 www.ceramictool.com Carpet/Vinyl Trim Reducers Reverse Trim Ceramic Tool MADE IN USA 30 TileLetter | March 2018