Section 199A: A Brief Introduction

Internal Revenue Code Section 199A, introduced by the Tax Cuts and Jobs Act of 2017, has arguably given rise to more speculation and discussion than any other provision of the act.

Section 199A introduces a set of complex rules and formulae that determine when a taxpayer qualifies to deduct up to 20% of certain income from “pass-through” trades or businesses. The Treasury issued much-anticipated final regulations governing Section 199A in January of 2019.