The Tax Cut and Job Act of 2017, which took effect on Jan. 1, 2018, made a number of significant changes in the wonderful world of tax law. Among the exciting new changes set forth in the new regime is a brand new income tax deduction for tax-savvy business owners who own their interests in pass-through entities (i.e., partnerships, LLCs, S-corporations and sole proprietorships).

A short and sweet explanation of the not-so-short-and-sweet new law: Any taxpayer that owns an interest in a pass-through entity may qualify for up to a 20 percent income tax deduction on the income of that business.

Simple, right? In some cases, yes. In others, a resounding no. The applicable Code section (I.R.C. § 199A) treats different taxpayers differently with respect to this deduction. Whether the deduction applies at all and to what extent it applies depends on a variety of factors including the total income of the taxpayer, type of business in which the taxpayer is engaged, wages paid by the taxpayer's business and property owned by the taxpayer's business.