Alan Gassman, Forbes Contributor

Most real estate investors and business people are well aware that new Internal Revenue Code Section 199A allows a 20 percent deduction for certain types of income, and that the real estate industry was favored under these new rules.

The issuance of new Proposed Regulations on August 8th answers many questions and raises others about how these rules impact real estate and real estate professionals, while presenting both planning opportunities and traps for the unwary that need to be considered by real estate investors, developers, and companies that are in real estate, or real estate-related trades or businesses. The Proposed Regulations are sure to change to some degree before they become final, but can be relied upon by taxpayers until then. On the other hand, parts of the Regulations that would hurt taxpayers need not be followed until they are made final, but reflect how the IRS is looking at the statute and how it may be interpreted. Read the full article.