5 IRS 199A Deduction Reg Questions, for Annuity Sellers

January 22, 2019 by Allison Bell

The Internal Revenue Services has completed major new 199A tax-deduction regulations that could lead professionals who work with annuities to try to redefine themselves.

Financial services groups could up spending years fighting over definitions in Washington because slight changes in what the IRS thinks certain terms mean could affect whether annuity sellers can, or can’t, get access to the 199A deduction.

Annuity sellers that qualify for the deduction may be able to subtract 20% of their profits from their taxable income.

IRC Section 199A Basics

Republicans put the provision creating the 199A tax deduction in the Tax Cuts and Jobs Act of 2017 (TCJA). The provision added Section 199A to the Internal Revenue Code.

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Originally Posted at ThinkAdvisor on January 22, 2019 by Allison Bell.