If you own real estate that you lease out to others, you may be wondering how you can save on rental property taxes.
Well, tax attorney Lucas Frei discusses some recent news out of the Internal Revenue Service. If you own rental property, watch or read more below.
Questions About How to Save on Rental Property Taxes?
Hello, everyone. Lucas Frei here, attorney at Robinson & Henry, P.C. I wanna briefly discuss a way in which you can save some money if you own rental real estate.
The IRS on Rental Real Estate
Recently, the IRS released some guidance that is basically a safe harbor. It allows people that operate rental real estate businesses the opportunity to qualify as a pass-through entity or a qualified business under Section 199a.
That is the 20% pass-through net deduction allowed by the IRS.
What Does that Mean?
This is great news because there could have been some ambiguity before. Now, the IRS has given us the rules as to exactly what needs to happen so that you qualify for that 20% deduction.
That can possibly save you quite a bit of money, especially if we’re talking about 20% every year going forward.