The South Carolina Association of CPAs is proud to use the power of its outreach to provide members with when-you-need-it guidance on significant developments in tax law.

With our connections to experts in the field, SCACPA can deliver these technical references via podcasts and video in a timely manner so you – and your clients – don’t have to wait for the next annual tax update seminar.

We asked Lynn Nichols, CPA, to break down the latest IRS guidance on two issues in Section 199A of the Tax Cuts and Jobs Act.

“The most frequently asked question I get at seminars about 199A has been, ‘Can a rental activity count as trade or business?’” Nichols said. “The answer is yes, and there is a safe harbor explained in Notice 2019-7. Another IRS document, Revenue Procedure 2019-11, addresses how to calculate ‘W-2 Wages’ when that number determines the W-2 wage limitation on a Section 199A deduction.”

Watch this video as Nichols details how Revenue Procedure 2019-11 can determine W-2 wages for the 199A deduction.