Clarity is worth its weight in gold.
The IRS issued 184 pages of regulations clarifying the new 20 percent Section 199A deduction. Based on the weight of those 184 pages, the value of this 199A clarity is about $32,670.93.
The value to you will likely be more or less than the $32,670.93, but count on it being worthwhile, for sure.
One big deal in the new regulations is a significant narrowing of the out-of-favor reputation and skill group. Other big deals are the clear definitions that apply to various professions.
The IRS did many businesses a huge favor with these new regulations. Let’s dig in and find out who benefits.
Why It Matters
If you operate an out-of-favor business (known in the law as a “specified service trade or business”) and your taxable income is more than $207,500 (single) or $415,000 (married), your Section 199A deduction is easy to compute. It’s zero.
Big Picture: Who Is Out of Favor?
This out-of-favor specified service trade or business group includes ... Log in to view full article.