Analysis

5 Key Changes In Final IRS Pass-Through Deduction Rules

Law360 (January 23, 2019, 8:28 PM EST) -- The Internal Revenue Service’s final regulations for claiming the new 20 percent deduction for pass-through income introduced a few surprises that could lead either to planning opportunities or to traps for the unwary.

In its final rules, the Internal Revenue Service eased somewhat on its original hard-line stance against “crack and pack” spinoffs that separate some functions into a new business enterprise. (AP) Here are the five main differences between the final regulations and the rules that were initially proposed last summer:

3-Year Look-Back Rule Imposed on Independent Contractors

When Congress was in the midst of passing the 2017 Tax Cuts and Jobs...

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