New Rules for Tax-Exempt Trusts’ QBI Deduction
Author: Staff Editors.
Source: Volume 18, Number 05, July/August 2019 , pp.16-16(1)
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Abstract:
IRC §199A, added by the Tax Cuts and Jobs Act (TCJA), allows non-corporate taxpayers to deduct up to 20% of qualified business income (QBI). Trusts, including tax-exempt trusts that have unrelated business income from a partnership, S-corporation, or sole proprietorship, are eligible to claim a deduction under IRC §199A. This article summarizes the key points and provides helpful guidance onn the service’s newly released instructions for how a trust that files Form 990-T should compute its IRC §199A deduction.Keywords: New IRC §199A; Qualified Business Income
Affiliations:
1: Family Foundation Advisor.