Does Your Rental Real Estate Activity Qualify for the 20% Sec. 199A Deduction?

By now, you’ve likely heard that certain businesses can qualify for a 20% income deduction under the new tax law.  This is true for an “active trade or business.”  Earlier this year the IRS issued a proposed safe harbor setting out how rental real estate activities can qualify as an active trade or business for the 20% business deduction. By safe harbor, we mean rules that should work, but taxpayers can still use case law to show their activities qualify as an active trade or business. In other words, this safe harbor can allow you to reduce the effective rate […]