Like the theme song in the movie Aladdin states, getting the most out of the new tax law is like “A Whole New World.” The new 20% Qualified Business Income Deduction (or QBID) affects business owners like realtors. You can learn more about QBID in this post.
Part of this “whole new world” introduced by the new tax law is an urgent look at the significance of the tax deadline, April 15, 2019.
If you are married and have already filed:
If you are married and file joint (MFJ) with your spouse and have already filed your 2018 tax return, consider this: thanks to 20% QBID in the new tax law, married filing separate (MFS) might give you a better tax answer.
But, wait - usually you have three years to amend, right? Usually, but here’s the exception. Amending to change your filing status from MFJ to MFS invokes a special rule. For an already filed 2018 return, the deadline to file amended as married filing separate is April 15, 2019. The clock is ticking, contact your tax preparer for options.
If you are married and haven’t filed yet:
OK, so you’re married and haven’t filed for 2018 yet - what should you do? If you file MFJ by April 15, 2019, when ultimately MFS might be better, no magic genie wish could remedy that choice after that date. We strongly suggest extending to allow proper analysis by your tax preparer if you want to take full advantage of QBID. Extending means filing Form 4868 to extend the due date until October 15, 2019. Payment may still be required with the extension.
At Advisage RVA, we care about things that matter. While you may not be our client (yet 😉), we still think the knowledge is important enough to put out there to help small businesses succeed.