On June 4, 2026, Treasury deputy assistant secretary for tax policy, Kevin Salinger, announced that Treasury and the IRS intend to release proposed regulations this summer addressing the now-permanent §199A passthrough deduction, as updated by OBBBA. The forthcoming guidance is expected to clarify several key items, including expanded income phase-in thresholds and the new minimum $400 deduction for taxpayers with at least $1,000 in “active” qualified business income. The proposed regulations also will tackle issues regarding the allocation of UBIA among partners of a partnership, a topic that is in need of clarification.

In addition, Treasury expects to issue several other guidance later this year. First, Treasury and IRS plan to issue proposed regulations addressing OBBBA-related changes to research and experimentation expenditures under §174. According to Salinger, “[t]his is going to include [section] 174(d), which may include some special rules for partnerships that incurred R&E expenses, on which we would like taxpayer input.” In the agriculture sector, Treasury and IRS expect to issue proposed regulations covering installment payment elections for farmland sales under new §1062, as well as the 25% exclusion from gross income of certain agricultural real estate loan interest under new §139L. Anticipated additional guidance also includes proposed regulations under §163(j) that “might touch on some partnership issues” and notices of proposed rulemaking addressing bonus depreciation under §168(k) and §168(n), with the latter covering new incentives for qualified production property.

We will be discussing §199A and the allocation of UBIA among partners in a partnership at the Tax Planning Forum® this fall. Registration remains open for our last spring Fundamentals program on June 23-25, as well as for all our fall/winter Fundamentals and Forum programs. Register early to reserve your spot, including for our fall in-person programs in Las Vegas and Orlando for which space is limited.