Tax Reduction SDII

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  • JoeyG
    Junior Member
    • Feb 2019
    • 3
    #1

    Tax Reduction SDII

    One of my clients asked me about the "sdii" reduction of 37.5% of their corp income, thereby reducing their effective C-corp tax rate to 13.125%. I had never heard of that. Anyone know what it is?
    Tags: None
    • JoeyG
      Junior Member
      • Feb 2019
      • 3
      #2
      I only have the initials -- no idea what they stand for

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        • TaxGuyBill
          Senior Member
          • Oct 2013
          • 2321
          #3
          It is FDII.

          Understanding the FDII deduction - Journal of Accountancy
          https://www.journalofaccountancy.com/issues/2019/feb/foreign-derived-intangible-income-deduction.html
          Starting this year, C corporations can claim a foreign-derived intangible income deduction of 37.5%.

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            • JoeyG
              Junior Member
              • Feb 2019
              • 3
              #4
              Thank you so much TaxGuyBill. I don't do much with foreign sourced income but that article was excellent! I appreciate the help -- it will keep me from sounding like a complete idiot with my client.

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