Tax Tip: New Line on Form 1099 for REITs
Income from real estate investment trusts can qualify for a new tax deduction on 2018 returns.
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What's a 199A dividend? New for 2018 tax returns, this term refers to income from a real estate investment trust -- and those 199A dividends could qualify for a sweet tax break.
Part of federal tax reform, Section 199A of the tax code details the rules for the new 20% tax break for qualified business income. And under those rules, REIT investment income is eligible for the 20% QBI deduction.
You'll find the Section 199A dividends amount on Line 5 of Form 1099-DIV. Use the Form 1040 instructions to figure out any tax deduction on that amount. The 20% QBI tax deduction is on Form 1040, Page 2, Line 9.
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