Real estate businesses looking to maximize their tax benefit under the new 20 percent deduction for pass-throughs will likely hustle to align with recent IRS rules.
The agency is allowing pass-through entities—partnerships, for example—to calculate their taxes using either August proposed rules (REG-107892-18) or January final rules for this tax year only. The break gives companies a chance to pick the most favorable option less than two weeks before tax filing season begins.
The Internal Revenue Service in the January rules finalized the deduction for rental real estate owners that spend at least 250 hours,
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