The Treasury Department released proposed regulations to clarify and codify how the big tax cut (aka the Tax Cuts and Jobs Act) applies to owners of sole proprietorships, partnerships, trusts, and S corporations. By early interpretations, high-earning authors would qualify for the new 20 percent deduction of qualified business income, and it appears as if literary agents would be eligible as well. (Two important caveats: These rules are still proposals, they are not final yet; and everyone will need to examine their own situation with their own tax professional.) As the NYT notes, it “probably means a windfall for authors […]
