US Treasury finalizes tax rule on pass-through businesses

WASHINGTON: The US Treasury on Friday released final regulations for a tax deduction of up to 20 percent for US businesses organized as so-called pass-through entities, under President Donald Trump's 2017 overhaul of the US tax system.

The 247-page document lays out how to determine the amount of deduction available to the owners of businesses that operate as sole proprietorships, partnerships, S-corporations, trusts and estates.

About 30 million US businesses, including many small "Mom and Pop" firms, are organized as pass-through entities. Rather than operating like corporations with shareholders, as many large companies do, these businesses pass profits through to their owners as personal income.