199A deduction for real estate investors
Posted by John T. Reed on
I got this email from WindyCampbell@mindspring.com
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Just last week, the IRS issued Revenue Procedure 2019-38 that has a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code. If all the safe harbor requirements are met, an interest in rental real estate will be treated as a single trade or business for purposes of the section 199A deduction. If an interest in real estate fails to satisfy all the requirements of the safe harbor, it may still be treated as a trade or business for purposes of the section 199A deduction if it otherwise meets the definition of a trade or business in the section 199A regulations. This safe harbor is available for taxpayers who seek to claim the section 199A deduction with respect to a "rental real estate enterprise," which may consist of an interest in a single property or interests in multiple properties.
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That deduction can be up to 20%.
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Just last week, the IRS issued Revenue Procedure 2019-38 that has a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code. If all the safe harbor requirements are met, an interest in rental real estate will be treated as a single trade or business for purposes of the section 199A deduction. If an interest in real estate fails to satisfy all the requirements of the safe harbor, it may still be treated as a trade or business for purposes of the section 199A deduction if it otherwise meets the definition of a trade or business in the section 199A regulations. This safe harbor is available for taxpayers who seek to claim the section 199A deduction with respect to a "rental real estate enterprise," which may consist of an interest in a single property or interests in multiple properties.
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That deduction can be up to 20%.
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