United States

Comments address use of section 199A by non-bank and bank lenders


Comments have been submitted by several RSM tax professionals, in their individual capacities, addressing the application of section 199A, the new 20 percent deduction, to individuals and pass-through entities engaged in the business of lending money, including finance companies who make or purchase loans or installment sales contracts. In particular, the comments seek to clarify that the business of purchasing or acquiring loans or contracts for the taxpayer’s own portfolio, not intended for resale to customers, is not properly considered to be “dealing” in such assets, and thus is not disqualified from the 20 percent deduction.

The comments also include recommended clarification of the application of the “mark-to-market” rules of section 475 to certain common transactions of such taxpayers.

View the comment letter