The IRS is open to tweaking guardrails that determine whether a gray area of the real estate industry qualifies for one of the 2017 tax overhaul’s headline perks: the 20 percent deduction for pass-through businesses, an official said.

The agency, said Frank Fisher, an attorney in the Internal Revenue Service chief counsel’s office,, is open to additional guidance on real estate qualifications for the pass-through deduction, is still finalizing the proposed revenue procedure, and has heard from businesses and tax professionals about the definition of a triple-net lease and a property owner’s responsibility for certain payments.

The 2017...