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1099 Dividend new entry for 199A qualified dividends mostly for REITs - It gets complicated

Form 1099 with new 199A qualified mutual fund distributions that include REITs.  Also known as the 20% small business deduction.

This is mostly for REITs which may qualify for the 20% small business deduction which may be more of a tax benefit than if ordinary or qualified dividends.

The situation with proposed regulations as well as the computation can be confusing.

Attached pdf is a White Paper I prepared to help explain the law and some of its complications.

Clients with self-employed retirement accounts may only be able to deduct 20% of their contribution yet would be taxed at 100% when distributed. You may save more taxes long-term if you maximize your IRA or ROTH so you are not penalized by only 20% deduction on your self employed plan deduction.

Sec199A Mess PDF