Facts About the Qualified Business Income Deduction

Below is a document from Carol Ragland, CPA to follow up the conversation that began in the Real Estate Broker Business Tax Issues class last week.


This document answers questions regarding the section 199-A deduction. It is a complicated deduction, but most self-employed taxpayers, including realtors can take the deduction. When the section 199-A was first written into law, there was a question if real estate agents would be eligible for this deduction, because if you were a 'Specified Service Trade or Business" (one that uses their reputation or skill to conduct business), you could not take the deduction. However, the regulation was updated to exclude real estate agents, as well as some other business ,from being classified as a SSTB. So, yes, if a realtor's income is below the qualifying threshold, they may take the deduction

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