20% applies to rent?

[Edsel]

Does the new s.199 deduction apply to rental income?  Rental income is not considered a "business" for some purposes - like self-employment tax, some believe for issuance of 1099s for services, etc.

I've heard the original bill made no mention of rental income, and a decision may come from a "technical correction."  Technical corrections come with every major tax legislation.  They can't think of everything when it's drafted.

[JohnH]

I'm convinced they think of lots of things when legislation is drafted, but the timing of their thinking has a strong correlation to when & in what amount the campaign contributions come rolling in.  Technical corrections become somewhat of an annuity stream for campaign financing. 

[Abby Normal]

I think we're still waiting on the IRS for interpretation.

[Abby Normal]

Acting IRS Commissioner David Kautter has said the IRS expects to issue guidance on the Code Sec 199A passthrough deduction in July

[jklcpa]

Right, we're all waiting for that guidance.  I took a webinar this afternoon on this topic that was pretty good, and the presenters said the same thing, waiting for IRS clarifications. 

[Abby Normal]

I think this year, the later you take CPE, the better.

[jklcpa]

2 hours ago, Abby Normal said:

I think this year, the later you take CPE, the better.

 

Agreed.  It's early for the tax courses, I know, but I try to do some CPE each month and can only sit through so many hours of A&A before I want to mix some tax in there.  I should probably do the ethics to put that behind me for this reporting period. 

[Sarypion]

Whether rental property is "business" or "investment", hasn't it been defined long before now?  It's a business if you rent out the property to earn a profit and work on it regularly, systematically, and continuously.