 Sec 199A 20% deduction (by Marv [IL]) Aug 10, 2018 10:59 AM
 Sec 199A 20% deduction (by David [NC]) Aug 10, 2018 3:17 PM
Sec 199A 20% deduction (by JB [OH]) Aug 11, 2018 9:57 AM
Sec 199A 20% deduction (by NC INVESTOR [NC]) Aug 12, 2018 9:56 PM
Sec 199A 20% deduction (by Marv [IL]) Aug 13, 2018 5:37 AM
Sec 199A 20% deduction (by Tonia [RI]) Aug 13, 2018 8:41 AM
Sec 199A 20% deduction (by Marv [IL]) Posted on: Aug 10, 2018 10:59 AM
Message:
Good news landlords. The IRS has come out with clarification about the 199A 20% deduction for rental properties. Landlords will be able to take the deduction if they operate at a profit. Quote:
(13) Trade or business means a section 162 trade or business other than the trade or business of performing services as an employee. In addition, rental or licensing of tangible or intangible property (rental activity) that does not rise to the level of a section 162 trade or business is nevertheless treated as a trade or business for purposes of section 199A, if the property is rented or licensed to a trade or business which is commonly controlled under §1.199A-4(b)(1)(i) (regardless of whether the rental activity and the trade or business are otherwise eligible to be aggregated under §1.199A-4(b)(1)). --173.15.xx.xxx |
Sec 199A 20% deduction (by David [NC]) Posted on: Aug 10, 2018 3:17 PM
Message:
Can you explain what a sec 199A 20% deduction gets you? I am not familiar with it. --65.188.xxx.xxx |
Sec 199A 20% deduction (by JB [OH]) Posted on: Aug 11, 2018 9:57 AM
Message:
Some of our buildings do not qualify as they are depreciated down. --24.123.x.xxx |
Sec 199A 20% deduction (by NC INVESTOR [NC]) Posted on: Aug 12, 2018 9:56 PM
Message:
199-A refers to the Business Income Deductions created under the new tax law for qualified businesses or more specifically any business not dependent on the reputation or skill of the principle i.e. law, healthcare, accounting. etc..
as for depreciated buildings " The statute is silent on the treatment of Sec. 1231 gain in determining qualified business income. In general, a Sec. 1231 asset is any depreciable asset or real property used in a trade or business for more than one year.23 A Sec. 1231 asset is specifically excluded from the definition of a capital asset.24".
When this law was initially passed it was considered a boon to pass through RE entities which makes sense since Mr. T stands to benefit greatly from it's treatment of LLC's which are how all of his businesses are structured.
For anyone who has filed their own taxes in the past this might be an excellent time to reconsider and get a good CPA with RE expertise if only for this year especially since they have a rather hefty fine attached for anyone under reporting income under the new partnership audit rules. --98.121.xxx.xxx |
Sec 199A 20% deduction (by Marv [IL]) Posted on: Aug 13, 2018 5:37 AM
Message:
Under Sec 199a, you will get to subtract 20% of your profits from your income. There are many restrictions. --173.15.xx.xxx |
Sec 199A 20% deduction (by Tonia [RI]) Posted on: Aug 13, 2018 8:41 AM
Message:
Hi, is this tax code viable to capital gains, I am disposing of a property this year. --208.54.xx.xxx |
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