Deduction for Qualified Business Income Under Section 199A

Description

This course will provide the practitioner with a detailed discussion and examples of the deduction for qualified business income under §199A as amended by TOBBB and modified by final regulations released January 18, 2019, proposed regulations on co-ops released on June 19, 2019, and other guidance including Rev. Proc. 2019-38, Rev. Proc. 2019-11, and additional proposed regulations. This provision affects every business tax return.   

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Describe who qualifies for the 20% deduction under §199A as well as the minimum deductible under TOBBB.
• Describe the statutory requirements for the 20% deduction under §199A.
• Describe the three categories of taxable income for the deduction under §199A.
• Define a specified service trade or business (SSTB) and how the §199A deduction applies to a SSTB.
• Define a qualified trade or business (QTB).
• Illustrate the application of the §199A deduction to an S corporation and partnership (RPEs) and how the self rental rules create QBI from a QTB.
• Recognize a SSTB and discuss the application of §199A for service-based businesses.
• Calculate Qualified Business Income (QBI).
• Describe when the rental of property reported on Schedule E is eligible for the §199A deduction and using the safe harbor test of Rev. Proc. 2019-38.
• Calculate the deduction for the three categories of taxable income.
• Describe the fracking rules.
• Describe the effect of wages on the calculation of the §199A deduction and the three different methods available for determining wages under Rev. Proc. 2019-11.
• Describe the effect of UBIA on the calculation of the §199A deduction, including UBIA for property contributed to a RPE, UBIA as an excess §743(b) basis adjustment, and calculating UBIA on property received in a like-kind exchange.