A client of mine showed me an article about the Section 199A exception for taxpayer with "residential" rental income. The article claims that the Section 199A deduction is not limited to the 50% of wages or 25% of wages plus 2.5% of unadjusted basis of depreciable assets; even thought the taxable income is higher than $315,000. And, this exception applies to on the "residential" rental income. Is this true? I searched online and IRS website, and can't find anything about the exception for the residential rental income earner.