Section 199A is easily the least understood topic of The Tax Cuts and Jobs Act. Your clients will look to you for explanations and best practices to maximize the 20% deduction. Pass-through entities and real estate investors stand to gain valuable tax cuts, and the average practitioner cannot afford to be uninformed on Section 199A. This course will cover all relevant facets and nuances of the deduction and enable implementation for tax returns. This program will include all IRS-issued guidance.
Learning Objectives
- Understand how the 20% deduction for pass-through entity owners works
- Implement the benefits of this deduction for income tax returns
Major Topics
- Latest guidance issued by the IRS, whether by way of regulations or administrative announcements
- What happens when the taxpayer owns multiple entities; aggregation rules
- Calculating qualified business income (QBI)
- How to identify a specified service trade or business
- Taxable income limits on specified service trade or businesses
- Maximizing the 20% deduction for pass-through entities and Schedule Cs
- What happens if QBI for a given year is negative?
- Whether a particular tax entity offers a greater Section 199A deduction
- Whether the owner of a Schedule E with net rental income can claim the Section 199A deduction
