Does Section 199A Apply to Foreign Rental Property?
Specifically, the Section 199A regulations require in most cases that a taxpayer’s real estate activity rises to the level of a Section 162 trade or business. Unhelpfully, Section 162 (another chunk of tax law) doesn’t actually define what a trade or business is.
Can a triple net be a business under section 199A?
If a business owner of a flow-through entity also is the landlord holding the triple net lease that automatically qualifies as a trade or business in Section 199A, no safe harbor is needed. If it is not a self-rental, there is a question about effort: the whole point is the tenant handles almost everything.
