As you probably know by now, the Section 199A 20-percent tax deduction is a nice gift from Uncle Sam.
Under the trade or business rule, your rental property profits can create the much-welcome deduction.
And now, under an alternative rule, you can use the newly created IRS safe harbor to make your rentals qualify for the deduction.
But be careful! You may not want to use the safe harbor rules because they come with some onerous provisions. We’ll explain the good, the bad, and the ugly when you read my new article titled Tax Tips: IRS Creates a New “Safe-Harbor” for Section 199A Rental Properties.
Three ways our fact-filled article can help you:
- We’ll explain the three classifications that rental owners need to be aware of. Under the new Section 199A rental real estate safe harbor regulations, each of your rental real estate properties individually or as a group falls into one of three categories. We’ll tell you what they are. (One of the three is brand new!) You’ll get all the details when you read the full article.
- You’ll learn exactly what the safe harbor requirements are. Solely for Section 199A purposes, the IRS will treat your rental real estate enterprise as a trade or business if you satisfy three requirements. We’ll tell you what they are when you read the full article.
- We’ll cover other important aspects of the new law that you really need to understand. We’ll cover rental services, non-qualifying real estate, tax return disclosure, 1099 issues, and more. You’ll get the whole story when you read the full article.