Small Rental Investors might miss out on tax deduction?

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Can Tax experts help to clarify this? People who own just one or two rental properties might not qualify for the new 20 percent federal deduction that big-time real estate investors and other pass-through entities will get starting this year. The federal tax law passed in December lets many pass-through entities such as partnerships and sole proprietorships deduct 20 percent of their “qualified business income,” with some limits. These are called pass-throughs because the business pays no taxes. Instead, income flows through to the owners and is taxed at their personal rates. The vast majority of U.S. businesses are pass-throughs.