Treasury Releases Final Rules for 20% Pass Through Entities

Filed in Codes and Standards by on January 21, 2019 0 Comments

US treasury department sign in Washington dc building facadeThe Treasury Department today released final regulations for the 20% pass through entity deduction under the Tax Cuts and Jobs Act of 2017.

The final regulations concern the deduction for qualified business income under Section 199A of the Internal Revenue Code.

The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.

The Treasury Department estimates that up to 40 million American business owners will be able to take advantage of this deduction.

The deduction is generally available with few limitations to small business owners with income below $315,000 for married couples filing jointly and $157,500 for single filers without limitations. Additional rules and limitations apply to higher-income earners.

NAHB is in the process of reviewing the rules to determine how they will affect our members.

Meanwhile, members who have queries regarding the proposed regulations are encouraged to submit questions to their tax professionals.

For more information, contact David Logan at 800-368-5242 x8448.

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