What the Section 199A is about in new

by | Apr 3, 2019 | Blog | 0 comments

Dear Landlords & Real Estate Titans:

The added new tax code Section 199A, which created a 20 percent tax deduction possibility for you if your rental property (a) has profits and (b) can qualify as a trade or business.

As the law now stands, with rentals that achieve trade or business status, you win. Your business-status rental property creates the following five possible tax benefits for you:

    1. Your rental property can create a Section 199A tax deduction of up to 20 percent of the rental property’s qualified business income.
    2. Your rental property receives tax-favored Section 1231 treatment, which (upon sale) delivers with a tax loss—an ordinary loss (the best kind of loss)—and with a tax-favored capital gain (the best kind of gain).
    3. Your rental property can create the home-office deduction if you meet the other home-office requirements of exclusive and regular use.
    4. Your rental-business status creates rental property deductions for the cost of your attendance at rental property meetings, seminars, and conventions.
    5. Your rental-business status enables Section 179 expensing for certain assets used in the business (special rules apply to the real property).

If you would like to discuss your rental property’s status as a trade or business or any other aspect of the rental, please call me on my direct line at 980-237-1714.

Sincerely,
GP CPA, CPA PC

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H. Johns
H. Johns
21:58 13 Jul 19
This firm is absolutely the best that I've dealt with when it comes to CPAs and financial advice. I'd gone to another CPA in the area for help with my small business during tax time, they stopped communicating and I was left with important documentation not filed and a lot of anxiety around what to do. My appointment with Justin was set up quickly and I was in within a couple days to sit down with him. When you first meet him, you get the impression that he's incredibly intelligent and knows what he's talking about. He took the time to guide me through each and every step that I needed to take to move forward and actually ended up saving me money. I am so grateful to him for his knowledge and professionalism. Total life saver! If you're a small business owner, you should not be taking your time, money or business anywhere else but GP CPA and their crew 🙂read more
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I was drowning before I met Justin. He totally transformed how I run my small business and has gotten me organized in ways I didn't even know were possible. I am so grateful for his advice and suggestions! This company is worth every penny.read more
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Ashlyn Lelej
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I highly recommend Justin at Prusiensky, CPA for all of your and tax needs. I've been a client for over two years, and have been consistently impressed with their dedication to helping my business grow and be financially successful. His advice is invaluable. Thank you!read more
Bobby Nguyen
Bobby Nguyen
22:23 20 Nov 18
My partner and I started our very first small business last year. Justin has been a blessing to us. Being new at all of this, we didn’t understand much of how business taxes work. Justin explained and answer all of questions that we have. He took care of everything for us throughout the year and have made life so much easier for us. I couldn’t have asked for a better CPA. Highly recommended!read more
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