Tax Issues
As part of its advocacy efforts on tax issues, IFDA actively engages policymakers about tax legislation and policies that impact foodservice distributors. Various letters on specific policies are listed below.
Small- and Family-Owned Business Pass-Through Deduction (199A)
Created by the “Tax Cuts and Jobs Act of 2017,” (TCJA) section 199A of the federal tax code allows small- and family-owned pass-through businesses such as S corporations, LLCs, partnerships, and sole proprietorships to deduct up to 20 percent of their qualified business income from federal income tax. It is set to expire on December 31, 2025. IFDA supports legislation to make the deduction permanent.
Estate Tax
TJCA also doubled the federal estate tax exemption. It also is set to expire on December 31, 2025. IFDA supports legislation to permanently repeal the estate tax.
Last In, First Out (LIFO) Accounting Method
“Last In, First Out,” or (LIFO), is a long-standing inventory accounting method used by many foodservice distributors, and other businesses, to manage the cost of inflation. If inventory costs are rising, LIFO is a more accurate way of measuring financial performance and calculating tax. IFDA opposes repealing LIFO.
Additional Letters
IFDA signed onto additional letters advocating for pro-growth tax policy.