Good News: Most Rentals Likely Qualify as Section 199A Businesses

As you probably know by now (and definitely know if you’re a regular reader of The Tax Reduction Letter), tax reform added tax code Section 199A.

This new section created a new 20-percent tax deduction possibility for you if your rental property has profits and can qualify as a trade or business.

Which means that if your rental property satisfies the above two conditions, you are a winner. A big winner!

In fact, your business-status rental property creates five terrific possible tax benefits for you.

We’ll tell you what they are, and a lot more, when you read my new article titled Good News: Most Rentals Likely Qualify as Section 199A Businesses.

Three ways our fact-filled article can help you:

1. You’ll learn why the new safe harbor provision is not the right answer for you. The IRS created a rental property Section 199A tax-deduction safe harbor that you can take advantage of. But … if your rentals qualify as a trade or business (and they likely do!) there’s a better way to go, as you’ll discover when you read the full article.
2. We’ll explain four IRS “comments” you should be aware of. If you own rental property, you need to know what the preamble to the final Section 199A regulations have to say. These comments are extremely important and impact how you play the game. We’ll give you the lowdown when you read the full article.
3. We’ll tell you about the importance of the Hazard and Murtaugh cases. If you live outside Connecticut, New York, or Vermont, the precedent for what makes your rental a trade or business is the Hazard case. It’s hard to think that your rental activities cannot reach the single-family rental property standard set forth in Hazard. The Murtaugh decision is also a big plus for you as we’ll explain when you read the full article.