This is not our parent's retirement! A blog for pursuing encore careers, side hustles and gigs in retirement.
Sunday, June 2, 2019
Is QBI right for you? - Hustler Daily Thumbs Up - June 1
Hello fellow Encore Hustlers
Is QBI right for you? What are the side effects ? Should you ask your physician?
No, QBI is not the latest nutritional supplement but the side effects of QBI could lead to a healthier bank account for Encore Hustlers. And yes, you should consult as professional, your tax professional.
QBI is short for Qualified Business Income and according to this article in Forbes, it should not be ignored if you are planning on working after retiring.
QBI came into existence as part of the 2018 tax reform bill. It allows businesses to be taxed at a flat rate of 20% and it permits you to deduct reasonable business expenses. Now the great thing about QBI is that it is not just restricted to big businesses, but it can also be be used by sole proprietorships, LLCs and S Corps. Therefore, if you planning to work after retirement being an independent contractor rather than a part time employee, applying QBI might be beneficial. Remember the goal should be, not what you make, but what you get to keep.
Now keep in mind you should not make any tax decisions based in this blog or from reading an article in Forbes. You should consult with your accountant and tax professional to determine if QBI is right for you.
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