199A Deduction and Pass-Through Entities
Wondering if pass-through entities are eligible for the 199A tax deduction?
In short, the answer is "Yes." The Sec. 199A deduction applies to pass-through entities and certain other sources of pass-through income, subject to certain limitations. The following are entities to which the deduction may apply:
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Schedule C
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Schedule E
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Schedule F
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Partnership*
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S-Corporation*
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Real Estate Investment Trust*⊛
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Publicly Traded Partnership* ⊛
*Deduction is determined at the partner or shareholder level.
⊛ This component of the Section 199A deduction is not limited by W-2 wages or UBIA of qualified property.