The proposed regulations under Internal Revenue Code Section 199A are finally here! Guest Tony Nitti returns to the podcast to cut through the 184 pages of recently released guidance to share his highly sought insight on the doors that were shut (and those that opened) in the proposed regulations.

TIME STAMPS OF WHAT'S COVERED

• [02:40] Initial reactions to the proposed regulations
• [05:48] Challenges in implementing the proposed guidance
• [11:09] What's a trade or business and when does a rental activity raise to the level of one?
• [16:16] Increased penalty associated with being aggressive
• [18:21] Aggregation rules
• [22:00] The tax law confidence bell curve
• [25:15] How #TaxTwitter contributed to the proposed regulations
• [30:48] We need a roadmap for QBI
• [33:25] Absent action, the deduction sunsets after 2025
• [37:03] Tony's take on the treatment of §1231 assets
• [38:39] My head hurts!
• [41:49] UBIA and other terms of art from the proposed regulations
• [44:36] Approach the TCJA-related guidance as a marathon not a sprint
• [48:27] Advice for a successful tax career in tax

BIO FOR GUEST

Tony is a tax partner based in WithumSmith+Brown's Aspen, Colorado office and is a certified public accountant in the states of New Jersey and Colorado. Tony's practice focuses primarily on corporate and partnership tax planning, with a special focus on the consolidated return regulations and the reorganization provisions, including the structuring of acquisitions, mergers, reorganizations, spin-offs and other restructuring transactions. Tony is a contributor to Forbes and his opinions and commentary on important tax issues have been quoted in Bloomberg, CNN Money and the BNA Daily Tax Report.

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ADDITIONAL RESOURCES

Mentioned in the episode

• Qualified business income deduction flowchart
• Simply Tax Episode 8: The Nitty Gritty—of Section 199A—with Tony Nitti
• Simply Tax Bonus Episode: CPA to CPA with Tony Nitti
• Proposed regulations: Qualified business income deduction

More on §199A from Tony

• IRS Provides Guidance On 20% Pass-Through Deduction, But Questions Remain (Forbes)
• 5 Passthrough Deduction Questions the IRS Must Answer (Tax Notes, subscription required)
• Understanding the New Sec. 199A Business Income Deduction (The Tax Adviser)
• The New 'Qualified Business Income Deduction Varies Based on your Business Type - Or Does It? (Forbes)
• Making Sense of the New '20% Qualified Business Income Deduction' (Forbes)

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