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TAX SEMINARS SINCE 1995

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199A for REITS & Publicly-Traded Partnerships

During our seminars, we discussed that income from real estate investment trusts (REITs) and publicly-traded partnerships is generally eligible for the new qualified business income deduction under §199A.  During this upcoming tax season, practitioners should be on the alert for such income being reported to clients.

Dividends from REITs are generally reported on Forms 1099-DIV.  Box 5 of the 2018 version of Form 1099-DIV is used to report 199A dividends.  (Such dividends that are included in Box 5 are also included in Box 1a for total ordinary dividends.)

Publicly-traded partnerships generally report their income on Schedule K-1.  The 2018 version of Schedule K-1 of Form 1065 has new codes associated with the §199A deduction in Box 20, (i.e., the other information box).  Code AD is used to report qualified publicly-traded partnership income for the §199A deduction.  Note: To the extent that a partnership also receives REIT dividends, these are reported with Code AC.

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