CCH Axcess iQ adds guidance for Code Section 199A Safe Harbor Rules for Rental Real Estate Businesses

IRS finalized a proposed revenue procedure that was issued earlier in 2019 that provides safe harbor for rental real estate businesses to be treated as a trade or business for purposes of §199A Qualified Business Income Deduction (QBID). According to the safe harbor rules, taxpayers can deduct up to 20 percent of their qualified business income from each of their qualified trades or businesses, including those operated through a partnership, S corporation, or sole proprietorship. The Tax Cuts and Jobs Act includes this deduction beginning after December 31, 2017 and before January 1, 2026. 

This significant tax benefit requires thorough understanding of definitions and complex concepts to obtain the maximum tax advantage. To truly come to terms with this change, and to provide the most valuable guidance for all your clients, you need to rely on tools that incorporate both in-depth tax reporting and valuable data about your clients who are affected by the event. 

The right tools to understand and communicate the new guidance

CCH Axcess iQ provides both these tools in one solution. It provides world-class editorial content you can use to educate yourself, as well as communicate with your clients. This new tax event provides background information about the finalized rules. It also provides commentary on the requirements that taxpayers or relevant passthrough entities (RPEs) must meet to qualify for the safe harbor.  

With this expertise and these tools, the task of providing high-level advisory services to your clients is easier than ever. Tax events like these, when properly understood, represent opportunities to showcase your business intelligence. The CCH Axcess big data pipeline provides each event with a list of clients potentially affected by this event. Additionally, each event comes with a client letter that you can use to start a conversation with your clients. Opening the lines of communication with your clients will lead to premier client service and revenue growth. 

To learn more about how CCH Axcess iQ can help you take advantage of tax events like this. Contact a Solutions Consultant or register for a demonstration today.


Jonny Rector

Senior Technology Product Manager

All stories by: Jonny Rector