On Friday, the IRS released guidance on a large number of Section 199A issues.  Section 199A allows taxpayers to deduct up to 20% of qualified business income from a domestic business operated as a sole proprietorship or through a partnership, S Corporation, trust or estate.

One of the hot topics dealt with the question of when rental activity qualifies as a trade or business.  Notice 2019-07 is a proposed revenue procedure that would provide a safe harbor for taxpayers.

Please click on the link below to read more about the rental real estate safe harbor and other guidance issued.

Article provided by Schreiber, Paul Bonner and Alistair Nevius in the Journal of Accountancy.