IRS Releases Proposed Regulations on Qualified Business Income Deduction

Posted by Kim Chen on August 10th, 2018

The IRS has released proposed reliance regulations (REG-107892-18) on the new Qualified Business Income (QBI) deduction under IRC Sec. 199A. The proposed regulations are divided into six substantive sections and provide guidance on calculating the deduction and applying various antiabuse provisions. The IRS also has issued Notice 2018-64 , which proposes a revenue procedure that provides three methods for calculating Form W-2 wages for purposes of the Section 199A(b)(2) wage limitation. The regulations generally are proposed to apply to tax years ending after the date they are adopted as final in the Federal Register. However, taxpayers may rely on the rules pending their finalization. Also, taxpayers may rely on Notice 2018-64 until the proposed revenue procedure is published in final form. Prop. Regs. 1.199A-1 through -6 and 1.643-1; Notice 2018-64, 2018-35 IRB .

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