You may know that new Section 199A of the tax code gives you up to a 20-percent tax deduction for your pass-through business income.
But what about your rental activities? Do they qualify you as an individual for this potential 20-percent deduction?
These are important questions that we’ll answer fully when you read my new article titled Tax Tips: New IRS Regs: Does Your Rental Qualify for a 199A Deduction?
Three ways our fact-filled article can help you:
- You’ll learn why you want rentals that qualify as businesses. This may sound strange because you report the rental on Schedule E (on your Form 1040). But Schedule E rentals are often “businesses” for purposes of the Section 199A deduction and other tax code sections. We’ll give you the whole story when you read the full after-tax-reform article.
- We’ll explain the relevant case law. There are a number of cases that help make clear whether your Schedule E rental activities qualify as Section 162 trade or business activities. We’ll cover the implications of the Hazard, Levy, Elek, Cottle, Jephson cases, and more when you read the full after-tax-reform article.
- We’ll tell you about the other valuable tax perks waiting for you. Your rentals, qualifying as Section 162 trades or businesses, get you some other nice tax benefits. We’ll explain three of them in easy-to-understand language when you read the article.