$110.00 
Learn more
Submitted By: someone
Answered: January 5, 2020 10:14 pm
Answered: January 5, 2020 10:14 pm
Is income from a sole proprietorship that holds rental real estate eligible for the 20%qualified business income deduction?
The qualified business income deduction applies only to a trade or business. Under an IRS-created safe harbor, a rental real estate activity may be treated as a trade or business for purposes of this deduction. Details of this safe harbor are in IRS Revenue Procedure 2019-38 (https://www.irs.gov/pub/irs-drop/rp-19-38.pdf).
advertisement
Featured Books
Tax Glossary
Qualified plan
A retirement plan that meets tax law tests and allows for tax deferment and tax-free accumulation of income until benefits are withdrawn. Pension, profit-sharing, stock bonus, employee stock ownership, and Keogh plans and IRAs may be qualified plans.
