In February of this year, the IRS published a proposed safe
harbor for owners of certain rental real estate interests who
wanted to take advantage of the qualified business income (QBI)
deduction (Notice 2017-19). The IRS has now released Revenue
Procedure 2019-38, which is its final guidance on the safe
harbor.
QBI in a nutshell
The 2017 tax law added Section 199A to the Internal Revenue
Code. It generally allows partnerships, limited liability companies
(LLCs), S corporations and sole proprietorships to deduct as much
as 20% of QBI received. The deduction is subject to several
significant limitations.
Related Read: "IRS Provides QBI Deduction Changes Just In Time
for Filing"
