Qualified Business Income Deduction (Section 199A): A Deeper Dive into Applying IRS Final Regulations & Revenue Procedures Self-Study Webinar (10 Hours)

Overview: 

The Section 199A Deduction in the Tax Cuts & Jobs Act of 2017 offers a substantial break for qualified individuals and pass-through entities. However, the law itself is vague and ambiguous. The final regulations, revenue procedures and notices recently issued by the IRS provide definitive guidance. In this comprehensive, hands-on self-study webinar, an expert will:

  • Guide you through the maze of rules and definitions to help you compute tax deductions and prepare the various tax forms, schedules and worksheets
  • Help you apply the rules for rental real estate
  • Provide you with the requirements and rules for aggregation, as well as specific examples illustrating compliance
  • Explain definitions, computations and regulations for Specified Service Trades or Businesses (SSTB) relating to Section 199A
  • Cover Computational and Reporting Rules for RPEs, PTPs, Estates and Trusts
  • Share a host of planning strategies to help business owners and pass-through entities maximize the tax benefits
Objective: 

To provide accountants and tax professionals with an in-depth examination of Section 199A, and guidance on applying IRS final regulations and revenue procedures  on computations and deductions of qualified business income for sole proprietors, partnerships, S corporation shareholders, qualified real estate investors, trusts and estates. This self-study webinar will also enable you to identify when rental real estate is entitled to the Section 199A deduction, and understand the proper application of aggregation. 

Emphasis: 
  • Treatment of rental real estate for Section 199A Deduction—Notice 2019-07
    – Requirements to be treated as a trade or business
    – Rental services
    – Non-rental services
    – Excluded rental arrangements
  • In-depth analysis of the final Section 199A regulations
  • Computing the Section 199A Deduction
    – Formulas and examples
  • Reporting by flow-through entities
  • Examination of definitions
  • Negative QBI amount, netting and carryover rules
  • W-2 wages and UBIA
    – Who are employees for W-2 wages?
    – Revenue procedure 2019-11
  • Unadjusted basis immediately after acquisition of qualified property
    – Improvements to qualified property
    – Not qualified property
    – Depreciable period
    – Like-kind exchanges/involuntary conversions
  • QBI, qualified REIT dividends and qualified PTP income
  • Allocation of items among directly conducted trades or businesses
  • Aggregation requirements, rules and examples
  • Required tax return disclosure
  • Specified service trades or businesses
    – Review of examples explaining definitions and computations
    – Effect of being an SSTB
    – Trade or business of performing services as an employee
    – Presumption that former employees are still employees
  • Trading in securities, commodities and partnership interests
  • Trade or business where principal asset of such trade or business is the reputation or skill of one or more employees or owners
  • SSTB de minimis rule
  • Services or property provided to an SSTB
  • 50% or more common ownership
  • Non-calendar RPEs
  • RPE, PTP, estate and trust computational and reporting rules
  • Grantor and non-grantor trusts and Section 199A
  • Electing Small Business Trusts (ESBTs)

• Recognize Congress’ overall methodology towards equalizing corporate and pass-through entity tax rates

• Identify the effective rate of pass-through income to an individual in the top income tax bracket

• Identify the period in which, absent further Congressional action, the Section 199A deduction will be available to qualifying taxpayers

• Identify those entities with income qualifying for the Section 199A deduction

• Recognize rental real estate qualifying as a Section 162 trade or business

• Recognize rental real estate enterprises meeting the safe harbor notice of Notice 2019-07

• Recognize the implications of properties leased on a triple net basis

• Identify the layout of the final Section 199A regulations

• Identify those items taken into account when computing qualified business  income

• Recognize the implications of the applicable thresholds of taxable income as they determine the availability of the Section 199A deduction

• Recognize those wages included in the determination of wages for purposes of the Section 199A deduction

• Recognize property included in the determination of Unadjusted Basis Immediately after Acquisition (UBIA)

• Recognize the anti-abuse mechanics in preventing taxpayers from artificially increasing their Section 199A deduction through the year-end purchase of qualified property

• Identify the applicable depreciable period in which property will qualify for inclusion in the Section 199A calculation

• Identify allowable allocation methods for items of QBI that are properly attributable to more than one trade or business

• Recognize the role of qualified REIT dividends and qualified PTP income in calculating a taxpayer’s combined QBI

• Identify the ownership thresholds allowing the aggregation of businesses for purposes of the Section 199A deduction

• Identify the circumstances under which trades or businesses may be aggregated for purposes of Section 199A

• Recognize the period under which a taxpayer may not aggregate trades or businesses that are disaggregated by the IRS for purposes of calculating the Section 199A deduction

• Identify the various fields of specified and non-specified trade or businesses

• Identify those taxpayers who would and would not be concerned with the status of their pass-through income as non-specified service trade or business or specified service trade or business

• Recognize those circumstances under which the presumption of being in the trade or business of performing services an employee may be rebutted

• Identify the types of services that are and are not considered to be specified service trades or businesses

• Recognize the threshold at which a business with both non-specified and specified business revenue streams may maintain its status as a non-specified trade or business

Bottom
Price: 
$249.00
Prerequisite: 

Working knowledge of federal income taxes.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Overview.

CPE Credit: 
10.00
NASBA Field of Study: 
Taxes