Final Real Estate Safe Harbor for 199A

The IRS recently issued Revenue Procedure 2019-38, which contains final rules for the real estate safe harbor rules for the qualified business income deduction under §199A.  The final rules are effective for tax years beginning after December 31, 2017; however, for the 2018 tax year, taxpayers are permitted to continue to rely on the interim safe harbor rules that were set forth in Notice 2019-7 in January of 2019.

In our January 24, 2019 post, we discussed the interim safe harbor rules.  

We will be discussing the final safe harbor rules and related strategies as part of our upcoming Individual Tax Year-End Workshops.