$25.00 
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
Withholding
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.
