Section 199A is the hottest tax topic related to the Tax Cuts and Jobs Act of 2017. The Act creates new reporting requirements for relevant passthrough entities (RPEs). Each RPE is required to report relevant data required to calculate the 199A deduction to each recipient of a Schedule K-1. Your clients will trust you to ensure that the relevant data is properly reported. The IRS has added disclosure lines to Schedules K-1 for S corporations, partnerships, and trusts. This course will cover the new reporting requirements on those forms and discuss uncertainties that still exist related to the reporting requirements. The course includes examples and case studies on completing the new disclosure lines of Schedules K-1. This program will include the latest relevant IRS guidance.
Learning Objectives
- Understand how to complete the required Schedule K-1 disclosures related to 199A
- Understand how to allocate 199A relevant amounts to shareholders, partners, and trust beneficiaries
- Understand how to calculate the amounts of wages and unadjusted basis immediately after acquisition of qualified property
Major Topics
- Latest guidance issued by the IRS, whether by way of regulations or administrative announcements
- Reporting requirements for all relevant passthrough entities
- Reporting for multiple activities within one entity
- Allocation of common items among multiple activities
- Section 199A Schedule K-1 reporting for tiered entities
- Calculation and reporting of qualified wages and the unadjusted basis immediately after acquisition of qualified property
- Allocation of 199A relevant amounts to beneficiaries of trusts using DNI
- How to handle separately stated items for which the status as Qualified Business Income is determined at the shareholder or partner level
- How ownership changes affect 199A reporting on Schedule K-1
- Reporting pulicly traded partnership income and REIT income to the partners or shareholders
- Reporting aggregated activities
- Allocating 199A amounts to partners when special allocations have been made by the partnership
