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Confused over Section 199A business earned income deduction for multi-entity businesses?
(Note this post raises questions but provides no substantive advice or conclusions. My focus in this and most blog posts is the practical effect on my target client group rather than an academic assessment of the law). I gave myself a personal ‘refresher course’ yesterday in re-reading parts of 1.199A-5 and REG-107892-18 , two of the applicable but difficult tax regulations related to the 20% business income deduction. My focus was a situation when a non-incorporated person’s business generates income from both a ‘specified service trade or business’ (SSTBs) and not SSTBs, then: 1) What are the accounting/reporting requirements, and
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House flipper liable for partner’s fraud
A SCOTUS ruling issued today impacts some small business deals. This is a common arrangement when a general partnership is formed to invest in real estate. A Supreme Court decision issued today in the Bartenwerfer case may be of interest to small business investors. A partnership among three people formed to purchase, remodel and sell a residential home went bad 18 years ago. One partner acted fraudulently without the other partners knowing. The partnership was sued for fraud and owed money on the resulting judgement. SCOTUS reversed the appeals court decision and upheld the financial responsibility for the debt of
