New IRS 199A regulations benefit out-of-favor service businesses

As we’ve discussed in recent issues of the Tax Reduction Letter, Section 199A provides a valuable 20-percent tax deduction for many businesses.

But as you may recall, the regulations deny the deduction to certain “out-of-favor specified service businesses” (when individuals’ incomes exceed certain limits. This has caused a lot of pain and consternation).

But now there’s good news! The IRS recently issued 184 pages of regulations that clarify the Section 199A out-of-favor rules.

The punch line is that the rules significantly help out-of-favor businesses.

You’ll get the whole story when you read my new article titled Tax Tips: New IRS 199A Regulations Benefit Out-of-Favor Service Businesses.

Three ways our fact-filled article can help you:

1. We’ll explain the impact on nine professions. We’ll cover health, law, accounting, consulting, financial services, brokerage services, actuarial services, performing arts, and athletics. If you work in one of these areas be sure to read the full after-tax-reform article.
2. You’ll learn how you’re affected if your primary asset is “reputation and/or skill.” More good news. The IRS has cut the draconian “reputation and/or skill” provision down to almost nothing! Don’t worry. Be happy. We’ll give you the glad tidings when you read the full after-tax-reform article.
3. We’ll explain the situation if you’re involved with investing, trading, or dealing. The new 199A regulations make things a lot clearer than they were before. Now, at least, you can see what constitutes an “out-of-favor’ business and decide whether you’re a winner or a loser. We’ll guide you through the IRS’s regulatory maze when you read the full article.