The Tax Cuts and Jobs Act (TCJA) provides significant tax benefits for owners of pass-through entities and self-employed individuals under new Section 199A. But there’s been confusion over the availability of the Section 199A deduction for rental real estate activities.
IRS provided guidance in Notice 2019-07 and accompanying regulations, featuring a new safe-harbor rule that should help. Watch for more guidance on this in the future. Meanwhile, read up on details of the new safe-harbor rule.