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Everything I'm reading online says I can use the new 20%

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Everything I'm reading online says...
Everything I'm reading online says I can use the new 20% rate on my real estate investments (5 residential rentals and one commercial rental), but my HR Block guy says that HR Block has determined that real estate rentals are not to be considered as a "pass thru" I'm confused. Also, the cut off or phase out limits...are those numbers for gross rent or after all deductions for expenses (eg taxable income?)
Submitted: 6 months ago.Category: Tax
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1/5/2018
Tax Professional: Barbara, Enrolled Agent replied 6 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,376
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Tax Professional: Barbara, Enrolled Agent replied 6 months ago

The Tax Cuts and Jobs Act (TCJA) creates a brand new tax deduction for individuals who earn income through pass-through entities (new IRC Sec. 199A). If your rental activity qualifies as a business for tax purposes, as most do, you may be eligible to deduct an amount equal to 20% of your NET rental income. This is in addition to all your other rental-related deductions. If you qualify for this deduction, you’ll effectively be taxed on only 80% of your rental income.

Pass through entities consist of sole proprietorships, partnerships, S corporations, and LLCs.

The following link contains excellent information you will find informative and helpful:

https://www.nolo.com/legal-encyclopedia/how-the-republican-tax-plan-affects-landlords.html

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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