{"id":375,"date":"2019-01-22T17:14:58","date_gmt":"2019-01-22T17:14:58","guid":{"rendered":"https:\/\/ayoub-associates.com\/blog\/?p=375"},"modified":"2019-01-22T17:15:22","modified_gmt":"2019-01-22T17:15:22","slug":"treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction","status":"publish","type":"post","link":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/","title":{"rendered":"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction"},"content":{"rendered":"<p>IR-2019-04, January 18, 2019<\/p>\n<p>WASHINGTON \u2014 Today the Treasury Department and the Internal Revenue Service issued final regulations and three related pieces of guidance, implementing the new qualified business income (QBI) deduction (section 199A deduction).<\/p>\n<p>The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act (TCJA) allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income. \u00a0Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly traded partnership income.<\/p>\n<p>The QBI deduction is available in tax years beginning after Dec. 31, 2017, meaning eligible taxpayers will be able to claim it for the first time on their 2018 Form 1040.<\/p>\n<p>The guidance, released today includes:<\/p>\n<ul>\n<li>A set of <a title=\"td-reg-107892-18\" href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/td-reg-107892-18.pdf\" data-entity-substitution=\"pup_linkit_media\" data-entity-type=\"media\" data-entity-uuid=\"225516d4-d0cd-45e8-8a9f-83f029ff9de3\">regulations<\/a>, finalizing proposed regulations issued last summer, A new set of <a title=\"reg-134652-18\" href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/reg-134652-18.pdf\" data-entity-substitution=\"pup_linkit_media\" data-entity-type=\"media\" data-entity-uuid=\"2b825047-81f2-4ff3-92aa-4e5631fdab5b\">proposed regulations<\/a> providing guidance on several aspects of the QBI deduction, including qualified REIT dividends received by regulated investment companies<\/li>\n<li>A <a title=\"RP-2019-11\" href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-19-11.pdf\" data-entity-substitution=\"pup_linkit_media\" data-entity-type=\"media\" data-entity-uuid=\"affad45f-97f1-435f-937c-2f0cd62ced2c\">revenue procedure<\/a> providing guidance on determining W-2 wages for QBI deduction purposes,<\/li>\n<li>A <a title=\"n-19-07\" href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-19-07.pdf\" data-entity-substitution=\"pup_linkit_media\" data-entity-type=\"media\" data-entity-uuid=\"9c6fb96f-7f1e-4788-86a6-081b978e5756\">notice<\/a> on a proposed revenue procedure providing a safe harbor for certain real estate enterprises that may be treated as a trade or business for purposes of the QBI deduction<\/li>\n<\/ul>\n<p>The proposed revenue procedure, included in Notice 2019-07, allows individuals and entities who own rental real estate directly or through a disregarded entity to treat a rental real estate enterprise as a trade or business for purposes of the QBI deduction if certain requirements are met. Taxpayers can rely on this safe harbor until a final revenue procedure is issued.<\/p>\n<p>The QBI deduction is generally available to eligible taxpayers with 2018 taxable income at or below $315,000 for joint returns and $157,500 for other filers. Those with incomes above these levels, are still eligible for the deduction but are subject to limitations, such as the type of trade or business, the amount of W-2 wages paid in the trade or business and the unadjusted basis immediately after acquisition of qualified property. These limitations are fully described in the final regulations.<\/p>\n<p>The QBI deduction is not available for wage income or for business income earned by a C corporation.<\/p>\n<p>For details on this deduction, including answers to frequently-asked questions, as well as information on other TCJA provisions, visit <a href=\"https:\/\/www.irs.gov\/taxreform\">IRS.gov\/taxreform<\/a>. \u00a0https:\/\/www.irs.gov\/newsroom\/treasury-irs-issue-final-regulations-other-guidance-on-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-to-claim-deduction<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IR-2019-04, January 18, 2019 WASHINGTON \u2014 Today the Treasury Department and the Internal Revenue Service issued final regulations and three related pieces of guidance, implementing the new qualified business income [&hellip;]<\/p>\n","protected":false},"author":88892,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1,3],"tags":[],"class_list":["post-375","post","type-post","status-publish","format-standard","hentry","category-business","category-general","category-tax-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.<\/title>\n<meta name=\"description\" content=\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.\" \/>\n<meta property=\"og:description\" content=\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/\" \/>\n<meta property=\"og:site_name\" content=\"Ayoub Sidhum &amp; Co.\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-22T17:14:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-01-22T17:15:22+00:00\" \/>\n<meta name=\"author\" content=\"marvy wagdy\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"marvy wagdy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/\",\"url\":\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/\",\"name\":\"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.\",\"isPartOf\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#website\"},\"datePublished\":\"2019-01-22T17:14:58+00:00\",\"dateModified\":\"2019-01-22T17:15:22+00:00\",\"author\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/e7680d8f49cf4471c3fb43f3f0b91311\"},\"description\":\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\",\"breadcrumb\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ayoub-associates.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#website\",\"url\":\"https:\/\/ayoub-associates.com\/blog\/\",\"name\":\"Ayoub Sidhum &amp; Co.\",\"description\":\"Full Service Riverside CPA &amp; Accounting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ayoub-associates.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/e7680d8f49cf4471c3fb43f3f0b91311\",\"name\":\"marvy wagdy\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6d7e19919a22b1368e63742499279fb?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6d7e19919a22b1368e63742499279fb?s=96&d=mm&r=g\",\"caption\":\"marvy wagdy\"},\"url\":\"https:\/\/ayoub-associates.com\/blog\/author\/marvyw4\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.","description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/","og_locale":"en_US","og_type":"article","og_title":"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.","og_description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","og_url":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/","og_site_name":"Ayoub Sidhum &amp; Co.","article_published_time":"2019-01-22T17:14:58+00:00","article_modified_time":"2019-01-22T17:15:22+00:00","author":"marvy wagdy","twitter_misc":{"Written by":"marvy wagdy","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/","url":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/","name":"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction - Ayoub Sidhum &amp; Co.","isPartOf":{"@id":"https:\/\/ayoub-associates.com\/blog\/#website"},"datePublished":"2019-01-22T17:14:58+00:00","dateModified":"2019-01-22T17:15:22+00:00","author":{"@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/e7680d8f49cf4471c3fb43f3f0b91311"},"description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","breadcrumb":{"@id":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ayoub-associates.com\/blog\/treasury-irs-issue-final-regulations-guidance-new-qualified-business-income-deduction-safe-harbor-enables-many-rental-real-estate-owners-claim-deduction\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ayoub-associates.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Treasury, IRS issue final regulations, other guidance on new qualified business income deduction; Safe harbor enables many rental real estate owners to claim deduction"}]},{"@type":"WebSite","@id":"https:\/\/ayoub-associates.com\/blog\/#website","url":"https:\/\/ayoub-associates.com\/blog\/","name":"Ayoub Sidhum &amp; Co.","description":"Full Service Riverside CPA &amp; Accounting","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ayoub-associates.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/e7680d8f49cf4471c3fb43f3f0b91311","name":"marvy wagdy","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a6d7e19919a22b1368e63742499279fb?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a6d7e19919a22b1368e63742499279fb?s=96&d=mm&r=g","caption":"marvy wagdy"},"url":"https:\/\/ayoub-associates.com\/blog\/author\/marvyw4\/"}]}},"_links":{"self":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/users\/88892"}],"replies":[{"embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/comments?post=375"}],"version-history":[{"count":1,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/375\/revisions"}],"predecessor-version":[{"id":376,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/375\/revisions\/376"}],"wp:attachment":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/media?parent=375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/categories?post=375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/tags?post=375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}