Section 199A Deduction for Rentals

The IRS published a notice, today, that provides some very helpful information regarding how to apply the new Section 199A Deduction (Qualified Business Income Deduction") to rental properties.

The main takeaway for property owners is the requirement to contemporaneously document at least 250 hours spent on the activity during the year. If you have multiple properties, and elect to aggregate them, the 250 hour requirement can be applied to the group.

Good recordkeeping is absolutely required in order to document your hours and take advantage of this new deduction.

Here is the link to the notice.