On September 24, 2019, the IRS issued Revenue Procedure 2019-38 finalizing safe harbor allowance of rental real estate for the purpose of Section 199A deduction. If all the safe harbor requirements are met, a rental real estate enterprise will be treated as a trade or business and the related rental income will be eligible for the 20% Section 199A deduction, subject to possible limitations.
The Revenue Procedure clarified that the following requirements must all be met by taxpayers or relevant passthrough entities to qualify for safe harbor –
Rental services that count toward the 250 hour requirement include:
Activities that do not qualify as rental services include:
If you have questions about the safe harbor requirements, call us today.
Receive Free financial tips & Tax Alerts!
"*" indicates required fields
In an era of growing environmental awareness and the push for sustainable living, homeowners are more interested than ever in upgrading their living spaces to be energy-efficient. However, it’s not…
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The Partnership Issue An unincorporated business with your spouse is…
The IRS announced that it has stopped processing all new Employee Retention Credit (ERC) refund claims and will continue its moratorium at least through December 31, 2023. (IR-2023-169) In IRS…