07/30/2018
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On July 25, 2018, Nareit submitted comments to the IRS concerning a draft IRS Form 1040, the individual income tax return. The IRS has not yet released instructions to Form 1040. In particular, the IRS revised Form 1040 to reflect the changes of last year’s tax reform bill, the Tax Cuts and Jobs Act (the TCJA).
Among other things, the TCJA allows individual shareholders a 20 percent deduction for qualified REIT dividends. The revised Form 1040 includes a new line 9 for a “Qualified business income deduction.” Nareit requested that the IRS revise the instructions to Form 1040 to explicitly state that the 20 percent deduction provided by line 9 of Form 1040 applies to qualified REIT dividends.
Contact: Dara Bernstein.