Saving money: REALTORS® win on new business income deduction
The Tax Cuts and Jobs Act, signed into law in December, includes a new deduction that allows qualifying businesses to deduct 20 percent of their business income. Until this week, it was unclear exactly what kinds of businesses would qualify for the deduction, but there is good news to report for REALTORS® across the country.
The proposed regulations from the Internal Revenue Service (IRS) for the business income deduction include owners of sole proprietorships, partnerships, trusts and S corporations. The National Association of REALTORS® (NAR) says this includes real estate professionals who are self-employed and those who operate through partnerships and LLCs. NAR met with federal officials of behalf of REALTORS® to ensure that the interpretation of the law works for REALTOR® businesses.