“You got to spend it to save it, Darlene”

By now, you've most probably heard about some changes in the tax law.

Especially the 20% deduction for "qualified business income" provision for sole proprietors, partnerships and "S" Corporations (sounds real good). As you know, these entities largely make up the lion's share of small business in America. 

The key here is what exactly is qualified business income. Or, the infamous words of Bill Clinton, "it depends on what your definition of 'is' is."

As a quick aside, during the writing of this blog, I was reminded of my Dad's admonition to my Mom when she dashed off for another 20% off deal. "You got it spend it to save it, Darlene" he advised. I digress.

Dad's admonition probably frames this topic beautifully.

I would encourage you not to make any rash, hasty decisions (spend or invest the $) before you know the actual impact on your taxes. You do so at your own peril and at the expense of your pocketbook.

The exact wording of this law is complex, containing many limitations. The IRS has only recently begun writing the 100s of pages of regulations that will ultimately dictate the outcome.

Naturally, this will take months to unpack the details. Some regulations will be temporary or phased down. IRS will be the final arbiter of who the winners and the losers are.

Sit tight.