Healthcare

We have been monitoring and reporting on tax reform for several months, including one of the most complicated areas of the new law – Section 199A, commonly known as the 20% pass-through deduction.

On August 8^th, the IRS released proposed regulations addressing the Section 199A deduction, commonly known as the 20 percent pass-through deduction. The guidance clarified several aspects of Section 199A that are of particular interest to healthcare providers, including the definition of “specified service trades or businesses” (SSTBs) and restrictions on splitting up existing businesses. At first glance, it appears that these new rules will limit the ability of healthcare professionals to qualify for the deduction. (For a broader look at the general impact of the proposed regulations, see the HORNE article, “Tax Reform: Guidance For Pass-Throughs Is Here.”)