The IRS has released a new revenue procedure that provides a safe harbor for taxpayers with a rental real estate enterprise so they can claim the qualified business income (QBI) deduction under Sec. 199-A.
Rev. Proc. 2019-38 holds that a rental real estate enterprise can be treated as a trade or business for purposes of the QBI deduction. The safe harbor relates only to Sec. 199-A of the Internal Revenue Code
Under the new procedure, real estate businesses that don’t meet the safe harbor requirements may still qualify if they otherwise meet the definition of trade or business under the Sec. 199A regulations. Get the details here.