February highlights from The MWE Advisor: IRS issues final QBI deduction regulations that address rental activities, the impact of net capital gains, offers guidance to help real estate investors understand the new deduction, and more.
IRS Issues Final QBI Deduction Regulations
Owners of eligible pass-through businesses can now deduct up to 20% of qualified business income (QBI). This tax break is only allowed for individuals, estates and trusts. Here’s a summary of new final regulations that address rental activities, the impact of net capital gains, carryovers of negative QBI amounts, and how to calculate various components of the QBI deduction and its limitations.
IRS Offers QBI Deduction Safe-Harbor Rule for Rental Real Estate
The IRS recently issued guidance to help real estate investors understand the new deduction for qualified business income (QBI). This break may be available to eligible noncorporate owners of so-called “pass-through” business entities for tax years beginning in 2018 and extending through 2025. Here’s how the new guidance helps clarify the rules for rental property owners.