FOCUS OREGON - V1 Issue 3

QBID
FREE MONEY!
Qualified Business Income Deduction – What does this mean to Photographers?
By Julia Fitzgerald, CPA, Cr.Photog.
The Qualified Business Income Deduction (QBID) is a new deduction on the newly formatted 2018
individual income tax return (form 1040).
For taxable years beginning after December 31, 2017, taxpayers other than C-Corporations may
be entitled to a deduction of up to 20 percent of their qualified business income from a qualified
trade or business under the Tax Cuts and Jobs Act.
So what does that mean for the Photographer businesses?
• New deduction of 20% times Total business profit (net income after all expenses)
• New line #9 QBID on the newly formatted 2018 1040 tax form
• Reduction of taxable income on your tax return
D id you know that OPPA offers multiple scholarships to members who have been with us
for at least 2 years? If you’ve been a member for 2+ years (must be two full years), you
can go to the website and download the application and apply for one of our scholarships
to attend any professional or artistic photography or business training. Thinking about going
to IUSA this year but not feeling like you have the extra cash to make it happen? Or maybe
WPPI is more your kind of thing. Or you’d like to visit our neighbors to the north and attend
their conference this spring. Or go to a special workshop or Texas School? There are dozens—
probably hundreds—of educational opportunities waiting for you and OPPA can help get you
there.
Last year, Brian Pasko won a $250 scholarship which he used to attend
IUSA last January. “As a small business owner, it’s sometimes difficult to
justify the cost of in-person photographic education. OPPA’s scholarship
provided the incentive I needed to gain additional skills that are helping
me to grow my business, “ says Pasko about how he used his scholarship.
• With a $50,000 profit (income after all expenses) on your schedule C, the QBID
tax deduction would be $10,000 (50,000 X 20% = 10,000)
• Phases out if Taxable income exceeds $157,500 if single or $315,000 if married
filing joint return
What types of businesses qualify?
• Sole Proprietorships
Julie Countryman also won a $250 scholarship. She also chose to use
her scholarship to attend IUSA. “As a first year member of PPA, I already
had a ticket to attend IUSA for free, winning the scholarship made my
decision easy, I had to attend IUSA. The knowledge that I gained at
IUSA was amazing and motivational.”
• Partnerships
• S-Corporations
If you have questions on this or other tax related
questions I’m always available for Lunch.
Applications for scholarships are available on our website: oregonppa.org/Scholarship.
All judging is blind—the scholarship committee does not know who the applicants are to
make it more equitable. Applications are due November 15th by 5pm.
did you know?
10 • FOCUS OREGON
FALL 2018 FOCUS OREGON • 11