2018 Tax Reform, Lets Talk

Started December 27, 2017 at 05:53 pm by @Bob31 in Marcellus Shale

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12/27/17 05:53:23PM
First I want to say I  hope everyone had a Merry Christmas and wish everyone a great New Year.  Im sure that theres more than me out there that's wondering what this New Tax reform bill has in store for those of us that are receiving royalties.  If anyone has done any research as yet on this subject Id like to hear what everyone thinks.  Please share your comments.  Thanks
12/28/17 03:31:08PM @k22:

Depends if you collect as an individual or as a LLC.  Members of a LLC will get a 20% deduction before being taxed at their individual tax rate.  Those who aren't in a LLC won't get the 20% deduction before being taxed at their individual tax rate.  That's how I interpret things.  But I could be wrong.

12/28/17 06:06:11PM @bob31:

Thanks for the reply, I ran in to a friend today that works in the tax field and he said pretty much the same thing so I think your right.  We did set up an LLC so I guess we'll hope for the best in the new year.

Bill Bergseid
12/28/17 10:20:06PM @bill-bergseid:

I don't think the 20% deduction for pass through entities will apply to royalties as they are treated have been treated in the past as "portfolio income".   If an individual puts  all of his investments in an LLC I doubt he will be able to deduct 20% of his portfolio income.  There are a lot of questions still to be answered about he new bill.  Kind of like Nancy Pelosi said 8 years ago: "We have to pass this bill to find out what's in it."




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