Thing #8: High Income Taxpayers Need Employees or Property
The law requires high-income taxpayers to either pay wages or hold depreciable property in order to get the Sec. 199A deduction.
A “high-income” taxpayer includes single taxpayers making more than $157,500 and married taxpayers filing joint returns making more than $315,000.
These extra requirements get complicated quickly, but basically the Sec. 199A deduction can’t be more than either 50% of W-2 wages or 25% of W-2 wages plus 2.5 percent times depreciable property.
https://evergreensmallbusiness.com/pass-thru-income-deduction-dozen-things-every-business-owner-must...
