Real Property Rental Safe Harbor under Code §199A
Code §199A allows taxpayers up to a 20% income tax deduction for business income earned through a sole proprietorship or pass-through entity. There are numerous requirements to meet, and one of these is that the business constitute a trade or business under Code §162.
Unfortunately, for rental real estate activities it is not often clear whether the activity constitutes a trade or business. To assist taxpayers. . .