Joint Ventures Involving Tax-Exempt Organizations, 4th Edition

CHAPTER 3Taxation of Partnerships and Joint Ventures

1. § 3.1 Scope of Chapter
2. § 3.3 Classification as a Partnership
3. § 3.4 Alternatives to Partnerships
4. § 3.7 Formation of Partnership
5. § 3.8 Tax Basis in Partnership Interest
6. § 3.9 Partnership Operations
7. § 3.11 Sale or Other Disposition of Assets or Interests
8. § 3.12 Other Tax Issues (Revised)

§ 3.1 SCOPE OF CHAPTER

p. 195. Insert the following at the end of this subsection:

(a) Treatment of Business Income to Noncorporate Taxpayers

For tax years beginning after 2017 (subject to a sunset at the end of 2025), the 2017 Tax Act (Pub. L. No. 115-97) (the “Tax Act”) will allow an individual taxpayer (including a trust or estate) who participates in a joint venture with a nonprofit a deduction of 20 percent of the individual's domestic qualified business income of a partnership, S Corp, or sole proprietorship.

An individual's qualified business income is the net amount of domestic qualified items of income, gain, loss, and deduction with respect to a taxpayer's “qualified business.” Qualified business generally is defined to include any trade or business other than a “specified service trade or business,” which includes any trade or business activity involving the performance of services in the field of health, law, accounting, actuarial signs, performing arts, consulting, athletics, financial services, brokerage services, and any trade or business the principal asset of which is “reputation or skill” of one or more of its owners or ...