I'm here in the IRS auditorium for the 199A public hearing.
The art outside the room is a poster from the opening of the Old Post Office observation tower in 1984.
That is next door to the IRS and it is now the Trump hotel.
The art outside the room is a poster from the opening of the Old Post Office observation tower in 1984.
That is next door to the IRS and it is now the Trump hotel.
24 speakers are signed up. Off we go!
I have already lost count of the number of times we have heard the word "subsection."
We are now learning about the difference between "consulting," which is not eligible for the break and "staffing," which seems to be eligible because those latter temp workers are not providing advice.
Another key question: Does income from rental real estate amount to a trade or business? If it does, that would help people who own some rental property but don't have that as their primary occupation.
The law is squishy here.
The law is squishy here.
I can hear the "I told you so" from everyone who said 199A was a bad idea and said it would lead to arbitrary line drawing and gaming.
Important update because I know you all care. The temperature in here is approaching 199 degrees.
My kingdom for a duct to Longworth.
My kingdom for a duct to Longworth.
Car dealers' rep walking through how the multiple-entity structure used by dealerships may create some service businesses that are ineligible for the break even though the business would qualify as one entity.
Actual thing just said: "I love regulations. [laughter] I don't mean it that way. I love the examples in the regulations."
Next question: If a lender routinely buys loans from retailers offering product financing, is the lender lending (eligible) or dealing (ineligible)?
We are two-thirds of the way through this hearing. Temperature is more temperate now.
NFIB praises Treasury's narrow interpretation of the "reputation or skill" clause.
So far, btw, no critics of 199A have spoken so no arguments in favor of anymore expansive reading.
So far, btw, no critics of 199A have spoken so no arguments in favor of anymore expansive reading.
Up now: owners of a company that franchise senior-care facilities.
They argue that their business is franchising and getting royalties, not providing health care.
They argue that their business is franchising and getting royalties, not providing health care.
Slight break and four more speakers to go. And then we wait for final regs....
And we go full cycle. Our IRS host says they are trying to make it warmer in here.
Commerce National Bank CEO says his bank's apparent ineligibility is a matter of trust (management department revenue being classified as a specified service).
Last speaker is from Tenaska, an energy company. Arguing that taking physical possession of commodities should not be seen as dealing in commodities (ineligible).
This hearing is a helpful reminder that there are lots of different types of businesses and nearly every rule will cause messes for some of them.
And we're done.
Gotta be someplace around here offering a 20% deduction on lunch.
Gotta be someplace around here offering a 20% deduction on lunch.
