Tax Cuts and Jobs Act (TCJA)
New 20% Pass-Through Deductin - Potential Impact on Real Estate Rentals
January 10, 2019
The Tax Cuts and Jobs Act (TCJA) signed into law in December 2017 made sweeping changes to
Federal tax law. One major change was the addition of the new §199A deduction, also referred
to as the “20% Pass-Through Deduction”. This new deduction applies to pass-through trade or
business entities such as sole proprietorships, LLCs, partnerships, and S-Corporations. This new
provision allows a tax deduction of up to 20% on qualified business income from qualifying
trade or business entities, including certain real estate rental activities defined as a “trade or
business”. The deduction is currently only temporary in tax law and will expire on December
31, 2025 without an extension from Congress. As we approach the 2019 tax filing season, we
want to make you aware of some §199A rental real estate issues that may impact your 2018 tax
Trade or Business Activity Requires Issuance of Forms 1099
January 21, 2019
All activities that rise to the level of a U.S. trade or business must provide and file Form 1099-MISC annually.
This memo provides an overview of some of the important rules surrounding Form 1099-MISC.