Working on TT for a retired individual and I noticed the form for Qualified Business Income Deduction (form 8995) was entered. This person does not have a business and lives completely off retirement savings. What to do?
Thank you,
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It probably came from a 1099-DIV for a REIT.
Under the Tax Cuts and Jobs Act of 2017, though, REITs have been afforded a new tax preference: the IRC Section 199A deduction for “pass-through” businesses, that allows for a 20% deduction of any qualified REIT dividends against that very income, resulting in an effective 20% reduction in the tax rate on REITs (where the top 37% tax rate becomes “just” 29.6% instead).
It probably came from a 1099-DIV for a REIT.
Under the Tax Cuts and Jobs Act of 2017, though, REITs have been afforded a new tax preference: the IRC Section 199A deduction for “pass-through” businesses, that allows for a 20% deduction of any qualified REIT dividends against that very income, resulting in an effective 20% reduction in the tax rate on REITs (where the top 37% tax rate becomes “just” 29.6% instead).
Thanks for the help. This did help me resolve.
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