Understanding the new Sec. 199A business income deduction

[Christopher Smith]

Just an FYI - A very brief excerpt from an article that appears in the "The Tax Adviser" - 4/1/2018 -

"Taxpayers entitled to claim the deduction

The Sec. 199A deduction is available to any taxpayer "other than a corporation." This includes:

• Individual owners of sole proprietorships, rental properties, S corporations, or partnerships; and
• An S corporation, partnership, or trust that owns an interest in a pass-through entity."

Of course this isn't authority, and the author caveats at the very end of the article as follows:

"Tax advisers are understandably eager for answers, but unfortunately, Sec. 199A is just one small piece of the most significant overhaul of the tax law in 31 years. The IRS is now charged with the Herculean task of providing guidance for a host of new and changed statutory provisions, and, as a result, it may be some time before tax advisers have answers to many of the questions posed in this article. Until that guidance arrives, Sec. 199A will best be approached cautiously, particularly in light of the reduced threshold for a substantial-understatement penalty that comes with claiming a deduction under this provision."