Employee Benefits Blog

Archives for 2019

Read More

The IRS Puts the Finishing Touches on the 20% Deduction

Final Section 199A Regulations

While most of the government was shut down, parts of the Treasury Department, including IRS personnel responsible for implementing late December 2017’s Tax Cuts and Jobs Act (TCJA), remained open. One of the most significant features and largest potential benefits in the TCJA for business owners is its introduction of Internal Revenue Code Section 199A, commonly referred to as the 20% qualified business deduction or QBI deduction. This deduction is temporary and applicable to years after December 31, 2017 and before January 1, 2026. A few days ago (and just in time for tax return filing season), the IRS provided final regulations and some related material explaining how to implement this deduction. The purpose of this article is to highlight specific features in the final regulations, relative to proposed regulations that were issued in August.

Read More

Tax Season Trap Door: Business Interest Expense Limitation for Pass-through Entities & their Owners

This article assumes that its readers are familiar with the basics of 163(j). If that assumption is false, please first read our earlier article, written just after the Tax Cuts and Jobs Act was passed. Our previous article is a summary of the Business Interest Expense Limitation as written in the Code, while this article explains the new guidance, primarily derived from the proposed regulations.

Read More

A Win for Rental Real Estate – Section 199A Deduction Safe Harbor

(An Explanation of IRS Notice 2019-07)

This month as final regulations were issued under Internal Revenue Code Section §199A, the IRS also issued a proposed revenue procedure that provides a “safe harbor” method of treating certain rental activity as a trade or business for purposes of §199A. Notice 2019-07 comes as a relief to many taxpayers who own real estate and were questioning whether they could benefit from the Section 199A deduction this tax season.