Originally published on Forbes.com.
Real estate management companies that want to distinguish themselves should be looking at IRS Notice 2019-07 That is the main lesson of today’s post, but it also applies to tax preparers and self-sufficient owners. There is something new to keep track of and it is a lot easier if you do it as you go rather than after the fact . First some background for context.
Is The Theater Really Dead?
If you want to get into Section 199A(the new trade or business deduction) in a big way, you are on the right platform. Just not with quite the right contributor. I might have gotten into a comprehensive treatment of 199A, but at this point, it would mostly be what “Tony Nitti wrote”, so you might want to go over there for the big picture.
But I’ve got something here for preparers and property managers, where acting sooner rather than later will be helpful. It is based on the theory that it is easier to collect information proactively as it is fresh, rather than a year or more later as often happens in tax work.
In order to qualify for the 20% deduction, your enterprise has to, as a threshold, be a “trade or business”. So whether a real estate rental is a “trade or business” is a thing that matters like – Can analysis be worthwhile? Is the theater really dead?
This article will be available soon on Think Outside The Tax Box
