Today the Treasury Department released proposed regulations intended to clarify Section 199A of the Internal Revenue Code. This section of law was introduced by December’s Tax Cuts and Jobs Act, and created a completely new, 20% deduction of certain pass-through and other “business” income. It also created numerous, significant questions regarding qualification for the new deduction.
As proposed regulations, these new rules do not carry the force of law that temporary or final regulations do. However, today’s release provides a sneak peek at the foundations of the final version.
Baker Newman Noyes will analyze these complex and lengthy proposed regulations over the next several days, and will share a summary of them shortly.