U.S. Treasury Issues Proposed Regulations Addressing the New Sec. 199A 20 Percent Pass-Through Tax Deduction

U.S. Treasury Issues Proposed Regulations Addressing the New Sec. 199A 20 Percent Pass-Through Tax Deduction
16 Aug 2018 by Brooke Morimoto

 

 

 

The Tax Cuts and Jobs Act (TCJA) created a new 20% deduction for qualified business income to reduce the tax burden on sole proprietors, the owners of S Corporations and partnerships and certain trusts and estates and their beneficiaries. On August 8, 2018, the Department of the Treasury (Treasury) issued proposed regulations interpreting the new provision. Taxpayers should take careful note of the new regulations as the pass-through deduction is effective for tax years beginning after December 31, 2017.

 

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