199A Proposed Regulations Issued For Pass-Through Businesses

On August 8th the IRS issued Proposed Regulations on the Section 199A Deduction, also known as the 20% pass-through deduction.  This was arguably the most complicated piece of the Tax Reform bill signed into law in December.  Some of the major outstanding issues the Proposed Regulations were supposed to address include:

  1. Definition of section 199A Qualified Business Income
  2. Aggregation method for calculation of QBI of pass-through businesses
  3. Deductible amount of QBI for a pass-through entity with business net loss
  4. Qualification of wages paid by an employee leasing company
  5. Application of section 199A to an owner of a fiscal year pass-through entity ending in 2018
  6. Availability of deduction for Electing Small Business Trusts

Additional insight will be posted over the coming week(s) as we comb through the Proposed Regs and additional guidance.  Check back here for our full analysis and how the IRS guidance may impact your personal tax situation.

©2018 HERTZBACH & COMPANY, P.A. All Rights Reserved.