In an article published in Accounting Today, Bennett Thrasher partner Tim Oberst discusses the highly anticipated proposed regulations for Code Section 199A, the new 20 percent deduction on “qualified business income” of pass-through entities, released by the Treasury Department and the IRS on August 8.
The new rules clarify a number of questions and in many cases answer them in a taxpayer-friendly manner, according to Oberst. “Banking and insurance business are winners,” he said. “Brokerage services is one of the excluded specified services, but it is defined to include only services in which a person arranges transactions between a buyer and a seller with respect to securities. This means that the category of excluded services does not include service provided by insurance agents and brokers, so those activities qualify for the deduction.” For the full article, please click here.
If you have questions about how the pass-through deduction under Section 199A and the recently issued guidance might affect you and your business, please contact your Bennett Thrasher tax advisor by calling 770.396.2200.