IRS Proposes Rules for 199A Deductions for Certain Trusts

In addition to final rules generally concerning 199A qualified business income deductions, the IRS last Friday concurrently issued proposed rules addressing how the deduction would affect charitable remainder trusts, split-interest trusts and regulated investment companies.

In previous comments to the IRS last fall, the American Bankers Association highlighted the need to allow certain types of trusts — including charitable remainder trusts and common trust funds — to take advantage of the deduction. ABA is currently reviewing the proposal to determine whether further comments are warranted. Comments will be due 60 days after publication in the Federal Register.