Section 199a Final Regulations

Recently, the IRS released final regulations providing guidance on the Qualified Business Income Deduction, also known as the Section 199A deduction. This guidance was originally released as proposed regulations back in August, and after a few tweaks and adjustments, they were made final on January 18th of this year. While the proposed regulations were helpful, taxpayers could not legally rely on them. They let taxpayers know how the IRS viewed certain aspects of the tax law, but they could not move forward with their tax plans until the regulations were finalized. Now that they are, taxpayers and their accountants can fully understand how this deduction will impact their 2018 taxes, and they can solidify their tax plans for 2019 and beyond.