The IRS made a series of changes to make it simpler for businesses to determine if they can or can't get the tax break, a senior Treasury official said. (Photo: Shutterstock)
(Bloomberg) –Business owners — and their accountants — can rest a bit easier: the IRS has given them the long-anticipated final word on how they can claim one of the biggest perks in the 2017 Republican tax overhaul.
The regulations detailing the new 20 percent deduction for pass-through business owners are of critical importance to the operators of such entities, who range from mom-and-pop convenience store owners to private equity investors.
The regulations, issued on Friday despite a partial government shutdown that has many Internal Revenue Service employees on furlough, can cut their tax bills by up to one-fifth, but also govern what many say is one of the most complex changes in President Donald Trump's tax law.
The IRS made a series of changes to make it simpler for businesses to determine if they can or can't get the tax break, a senior Treasury official said on a call with reporters.
Veterinarians, for example, don't qualify for the deduction, but rental real estate owners that spend at least 250 hours a year involved with the business can get the deduction, according to the IRS guidance.
Copyright 2019 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
