Section 199A S Corp Considerations

By Jason Watson, CPA
Posted Wednesday, November 1, 2023

Section 199A deduction also known as the Qualified Business Income Deduction (QBID) arises from the Tax Cuts & Jobs Act of 2017. This is a significant tax break for small business owners but there are rules and limits of course.

As with any major revision to the tax code, there will be modifications and interpretations which will change how Section 199A can be used for pass-through businesses such as S Corps and partnerships. On August 8, 2018, the IRS released Proposed Regulations 1.199A that introduced new definitions, procedures and restrictions. On January 18, 2019 the Treasury Department and the IRS released the final regulations for Section 199A after reviewing the comments from the proposed regulations.

Here is a quick list links to various things that we’ve put together for Section 199A enthusiasts-

wcginc.com/8323	Section 199A Final Regs (1.199A) PDF (Full)
wcginc.com/8326	Section 199A Final Regs (1.199A) PDF (Pertinent Pages)
wcginc.com/8313	Section 199A Tax Return Samples

Stay tuned to updates as additional guidance is released by visiting our blog-

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