Here’s more good news from Uncle Sam…
The IRS issued final Section 199A regulations that contain some hew and very favorable provisions for out-of-favor specified service trades and businesses.
A nice feature of the new regulations are the de minimis rules that allow you to break your out-of-favor business into two or more businesses for the purpose of successfully claiming your Section 199A tax deduction.
You’ll get the whole story when you read my new article titled Tax Tips: IRS Section 199A Final Regs Shed New Light on Service Businesses.
Three ways our fact-filled article can help you:
- You’ll learn about important changes in the definition of “out-of-favor” service trades or businesses. For definitions of out-of-favor service trade or businesses under Section 199A, don’t look to the tax code sections (other than Section 199A). The IRS says that the 199A service definitions stand-alone even though the IRS itself borrows sentences and paragraphs from its other regulations. This change can have big and positive implications for your business, as you’ll learn when you read the full article.
- We’ll explain “consulting” as defined by Section 199A. The new law makes consulting an out-of-favor business, and the IRS has now explained what it deems as consulting. There are lots of things to say about how the IRS clarifies what is and is not consulting. I urge you to read the full article.
- We’ll tell you how to make the de minimis rules work for you. We’ll explain the best way to navigate the system. To make this crystal-clear, we’ll provide two detailed examples you really shouldn’t miss. You’ll get all the details when you read the full article.