The Tax Professionals Blog — sec 199a

A question was raised as to whether a home office can be included in the total of qualified property used in determining QBI when using the section 199A(b)(2)(B)(ii) 2.5% of unadjusted basis of qualified property (UBIA) limitation.

The Sec. 199A deduction has stirred up a lot of controversy in the tax preparation community related to whether landlords are subject to information reporting requirements, typically filing and issuing 1099-MISC forms for annual payments of $600 or more to unincorporated service providers such as plumbers, the pool guy, gardeners, etc. And unfortunately, the government has added substantially to that confusion.