Section 199A - question - Spidell

Section 199A – question

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Message Board Section 199A – question

This topic contains 2 replies, has 2 voices, and was last updated by Anonymous 9 months ago.

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  • #138527
    Anonymous

    Hello, i am confused on why the 199A deduction allows a 20% deduction for self rentals (i.e. Business who pays rent to owners home office reported on schedule E). how is this even a trade or business?! Why would the IRS allow for this if it doesnt meet the trade or business requirements? It just seems like you are creating your own 199A deduction…

    Also, lets say an attorney has a home office and does the self rental, so his corp pays him rent and he reports on Schedule E, is that allowed for 199A even though most of the rent income comes from a SSTB?

  • #138671
    Lynn Freer
    Participant

    I believe the rationale is that the business is deducting the rent and thus losing a part of the 199A deduction so the individual can claim it. I’m not sure how the office in home works.

  • #138784
    Anonymous

    Also, can you let me know about this?

     

    lets say an attorney has a home office and does the self rental, so his corp pays him rent and he reports on Schedule E, is that allowed for 199A even though most of the rent income comes from a SSTB?