The Section 199A final regulations raise a number of important issues. The final regulations provide new guidance on certain fundamental rules under Section 199A at a time when many taxpayers and preparers are preparing returns for 2018. Careful consideration should be given to the rules and their application.
While a significant benefit for many taxpayers, the Section 199A deduction is one of the most complex provisions of the Tax Cuts and Jobs Act because of its many nuanced requirements. Despite these complexities, taxpayers will need to comply with all of the statutory and regulatory requirements of Section 199A in order to successfully claim and sustain the benefit.
What do you need to know about Section 199A? Learn more about the deduction and computing the deduction here.
What should your company be discussing with your tax advisor about Section 199A? Start with these 6 questions.
What characteristics of a company are necessary for an individual owner to qualify for the Section 199A deduction?