Article Date:
September 2018

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Use a Conservation Easement Donation to Create a $63,000 199A Deduction

Does your out-of-favor specified service business give you a zero Section 199A tax deduction because your taxable income is more than1



$415,000 on a joint return or


$207,500 on all other returns?


Whether or not you have an out-of-favor business, you qualify for the full 20 percent Section 199A deduction if your taxable income is equal to or less than2



$315,000 on a joint return or


$157,500 on all other returns.


Example. You are in an out-of-favor specified service business, as we explain in New IRS 199A Regulations Benefit Out-of-Favor Service Businesses. You are married and have taxable income after itemized deductions of $600,000.


You invest $120,000 in a qualified conservation easement that produces a charitable tax deduction of $285,000. Now your taxable income is $315,000 and your 20 percent Section 199A tax deduction is $63,000. ... Log in to view full article.

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