Passthrough Regulations and Guidance Released

Final section 199A regulations and additional proposed rules concerning passthrough deductions were released on January 18. The final regulations concern the 20 percent business income deduction available to passthrough owners meeting certain income thresholds that was introduced under the Tax Cuts and Jobs Act (TCJA). Included in the final regulations are a technical definition of “net capital gain,” an expansion of the definition of “relevant passthrough entities” to include certain common trust funds, and retain, with a small adjustment, the technical definition of “trade or business.”

Further, the IRS has released two pieces of guidance (Notice 2019-07 and REG-134652-18) which address section 199A in relation to rental real estate businesses and real estate investment trusts, respectively.

Read More: Treasury, IRS issue final regulations, Passthrough Regs Clarify Anti-abuse Rules for Trusts;
Read Regulations: Section 199A

Read Guidance: Notice 2019-07; REG-134652-18


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