Article Date:
February 2019

Word Count:



IRS Clarifies Net Capital Gains in Final 199A Regulations

Good news. The IRS in its final regulations on the new 20 percent tax deduction under Section 199A clarified what capital gains are for Section 199A.


Sadly, they include more downside than we had hoped.


But clarity is worth a ton. And with the final regulations, the IRS has given clarity to the capital gains component of the Section 199A tax deduction.


The Section 199A tax deduction applies to your trade or business income from a pass-through entity such as a proprietorship, rental property, trust, estate, partnership, or S corporation. When taxable income is equal to or less than the threshold of $315,000 (married, filing jointly) or $157,500 (filing as single or head of household), your Section 199A tax deduction is the lesser of your



taxable income reduced by net capital gains, or


qualified business income as explained in IRS Issues Final Section 199A Regulations and Defines QBI. ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee