A HUGE IRS WIN FOR REALTORS!
On August 8th, the IRS released its proposed tax reform with a
new 20 percent business income deduction for pass through businesses. According to NAR,
The deduction was part of the big tax reform law Congress passed at the end of last year and it was a huge win for REALTORS®. But it was unclear who would be eligible for the deduction. Now that proposed regulations are out, it’s clear the new deduction will be available to a wide range of real estate professionals."
"REALTORS® were integral to the favorable interpretation in the proposed rules. Your association made a forceful case—both in a detailed letter it sent on June 19 and in a face-to-face meeting with IRS officials in early August—that certain limitations on specified service businesses were not intended by Congress to apply to real estate professionals. And that’s the interpretation the IRS has ended up taking." (NAR, 2018).