More than one activity or business?
Owners whose businesses involve
avariety of activities may find that income from some qualify for the deduction while others don’t, says Angela Dotson, a CPA with Aprio in Atlanta. An optometrist who treats patients may not be able to claim the deduction for that work. But the same optometrist who also sells eyeglasses and contact lenses may be able to use the deduction for that income.
Another example: A graphic designer who consults with clients but also creates websites. “You’re consulting, but also selling a product,” Berdahl notes.
There might be some unpleasant surprises when owners in such situations get to their CPA’S offices. The new law requires separate records for the different types of work.
“They might find their books may not be in good shape for tax reform — they may not show the data CPAS will need to know,” Dotson says. In that case, either the owner has to go back and change