If you own rental real estate, you may need to act now in order to take advantage of significant income tax deductions under the new Section 199A. The IRS has just issued proposed Final Regulations and a Special Notice. The Notice establishes a safe harbor test for rental real estate. If your real estate rental business passes the safe harbor test, it is deemed an “active trade or business” for purposes of qualifying for the 199A deduction. Of note is that “triple net leases,” which are very commonly used, and pursuant to which the landlord has few obligations regarding repair, maintenance, property tax payments and the like, will not pass the new safe harbor test. This does not mean that a triple net landlord cannot otherwise qualify as a trade or business, but the safe harbor will not be available. In short, if you are a landlord and want to obtain the tax benefits of Section 199A, you may want to change current lease and management activity.