#56: This week, I invited CPA Steve Nelson, whose tax blog I’ve followed for years, to chat with us about the details of how Section 199A works and the restrictions around it.

199A created a huge new tax break for small business owners, partnerships, real estate investors, and contractors. But there was a lot of uncertainty initially due to seeming ambiguities and loopholes in 199A without clear guidance/regulations to address them.

Now, two years later, a lot has become clearer.

We discuss:

• Section 199A overview
• What counts as Qualified Business Income
• Key rules and restrictions of 199A
• Strategies for maximizing the 199A deduction
• How 199A might alter your retirement contribution strategy
• Special considerations for real estate investors (including why a 1031 exchange may no longer make sense with 199A)
• Special considerations for professional service partnerships (law, medicine, accounting, etc)
• Special considerations for freelancers and online business owners
• What happens to 199A after 2025

Check it out here:

https://hackyourwealth.com/section-199a

Are you currently able to avail Section 199A? If so, how has it changed your business operations and/or financial planning considerations, if at all? Let me know by leaving a comment.

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Links mentioned in this episode:

• Evergreen Small Business blog
• How the final Trump tax bill affects you: analysis for early retirees
• HYW private Facebook community

 Intro/Outro: Old Bossa by Twin Musicom.