Description
Gain an understanding on limitations for rental real estate businesses and how practitioners can assist their clients in structuring their operations to fit within the safe harbor.In 2017, Congress passed a sweeping tax reform package, which included a major provision for owners of small businesses. This provision, located in Section 199A of the code, provides for a 20 deduction for owners of many small flowthrough tax entities, such as S Corporations and partnerships. However, the provision contains certain limitations, and in particular restricts the deduction for businesses engaged in passive activities, which includes rental real estate businesses. This topic will address this limitation for rental real estate businesses, and will focus specifically on how practitioners can assist their clients in structuring their operations to fit within the safe harbor provisions issued by the IRS in Revenue Procedure 201938 to ensure that the business owners will qualify for the Section 199A deduction.
Date: 2020-04-23 Start Time: End Time:
Learning Objectives