Single Entity Can Apply 199A De Minimis Rule Multiple Times, According to IRS Official

Speaking at the American Institute of CPAs Fall Tax Division Meeting in Washington, D.C. on November 14, IRS associate chief counsel Holly Porter stated that the section 199A de minimis test applied to identify specified service businesses could apply multiple times for the same entity if separate businesses are being operated.  Enacted by the Tax Cuts and Jobs Act (TCJA), section 199A allows for a 20 percent deduction for certain passthrough business owners.  Porter explained that one passthrough could maintain separate records for each business within the entity and apply the de minimis thresholds separately to each business.

Read more: 199A De Minimis Rule Could Apply Multiple Times in Same Entity

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