Recently, the IRS issued proposed regulations to provide guidance for claiming the 20% passthrough deduction. The regulations provide definitions of Specialized Service Trade or Business that attempt to widen the scope to businesses related to a Specialized Service Business and clarification on calculating the limitations for Qualified Business Income – just to name a few of the items in the document.
The IRS has asked for comments on the regulations to be provided within 45 days of their issuance. At that time the IRS will weigh the commentary and then either finalize the regulations as issued, propose new regulations, finalize regulations with new provisions or do nothing. Although these regulations are not binding when in proposed format they do provide the current thinking of the IRS.
We will continue to monitor the progress of these proposed regulations and will notify you of the details of the finalized regulations.
For your reference, here are some IRS resources regarding the proposed regulations: