Doug Andre Advises on What New IRS Guidance May Mean for Rental Real Estate OwnersPDF
IPB partner Doug Andre has written an article for National Real Estate Investor, entitled, "What Recent IRS Guidance Means for Rental Real Estate Owners." Doug reviews recent IRS Rev. Proc. 2019-38, related to Section 199A of the 2017 TCJA, as it pertains to businesses that own and operate rental real estate.
Eligible taxpayers, including individuals operating as sole proprietorships, partnerships, S corporations, and trusts and estates that carry on a “qualified trade or business” can potentially deduct up to 20 percent of qualified business income defined as the net effectively connected income from a U.S. trade or business; while most types of investment income are excluded, rents from leasing real estate can qualify for the deduction if the activity rises to the level of a trade or business (as compared with a purely investment activity).