Section 199A: Applications and Challenges (AIG4)

Overview

Section 199A has been with us since the Tax Cuts and Jobs Act of 2017 was passed. Your clients look to you for explanations and best practices to maximize the 20 percent deduction. Pass-through entities and real estate investors stand to benefit from valuable tax cuts. The average practitioner cannot afford to be uninformed on Section 199A. This program incorporates the experiences of many tax practitioners since the creation of Section 199A related to the calculation and application of this deduction. This course will cover all relevant facets and nuances of the deduction, as well as implementation issues and lessons that will be useful in advising clients this year. This program will include all relevant IRS guidance.

Major Topics:

• The latest guidance from the IRS provided through regulations or administrative announcements
• Taxpayers that own multiple entities; aggregation rules
• Calculating qualified business income
• The latest guidance on specified trades or businesses
• Taxable income limits on specified service trades or businesses
• Maximizing the 20 percent deduction for pass-through entities and Schedule Cs
• Accounting for negative QBI
• Whether particular tax entities offer a greater §199A deduction
• Whether the owner of a Schedule E with net rental income can claim the §199A deduction
• A look to the future. Will §199A survive?

Learning Objectives:

• Understand the 20 percent deduction for pass-through entity owners
• Implement the benefits of this deduction for income tax returns
• Understand the impact of the possible expiration of §199A in 2025