IRS Corrects Draft of Final Pass-Through Write-Off Rules

The IRS cleaned up its final rules for the 2017 tax overhaul’s write-off for pass-through businesses—regulations initially released Jan. 18—ahead of official publication in the Federal Register.

Corrected regulations include a revised definition of “excess Section 743(b) basis adjustment” and some small rewordings. The Internal Revenue Service said in an email containing the revised draft that this version “has been submitted to the Federal Register for publication.”

• The 2017 law provided owners of pass-through businesses—limited liability companies, S corporations, partnerships, and other structures taxed at the individual-owner level—with a 20 percent deduction under added tax code Section 199A
• Self-employed individuals ...