IRS issues four items of IRC §199A guidance


On January 18, 2019, the IRS issued four new items providing IRC §199A guidance:

  • Notice 2019-07: Provides a safe harbor under which a rental real estate enterprise will be treated as a trade or business solely for purposes of the IRC §199A deduction.
  • Rev. Proc. 2019-11: Provides methods for calculating W-2 wages, as defined in IRC §199A(b)(4) and Treas. Regs. §1.199A-2.
  • A set of regulations: Finalizes proposed regulations issued last summer.
  • A set of proposed regulations: Provides guidance on the treatment of the following:
    • Previously suspended losses that constitute qualified business income; and
    • The determination of IRC §199A deductions for taxpayers that hold interests in regulated investment companies (RICs), charitable remainder trusts (CRTs), and split-interest trusts.

Links to the full text of all four of these items can be found at:

www.irs.gov/newsroom/treasury-irs-issue-final-regulations-other-guidance-on-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-to-claim-deduction

We will provide more information on the latest guidance in upcoming publications, webinars, and live seminars.

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