Passthrough Business Deductions: Section 199A (Mini)

  • Credits: 2
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Update
  • Author/Speaker: Danny C. Santucci, CPA
Course ID: Advanced Preparation: Experience Level:
EWTFM-U-01776-21-S | 6233-CE-0497 None Overview
Published Date: Program Prerequisites: Other Course Formats:
© March 2021 General Understanding of Federal Income Taxation. Self-Study eBook
COURSE DESCRIPTION

The Tax Cuts and Jobs Act (P.L. 115-97), enacted Dec. 22, 2017, created, under §199A, a new deduction for up to 20% of qualified business income (QBI) from partnerships, limited liability companies (LLCs), S corporations, trusts, estates, and sole proprietorships for tax years beginning after Dec. 31, 2017. However, determining the §199A deduction amount and availability is a very complex multi-step process that may phase out some or all of the deduction.

In the face of this complexity, the text provides a selected overview of the basic components of this below-the-line deduction. Qualified business income, taxpayer's taxable income, wage/capital limit, specified services trade or businesses, and other key components are not only defined and calculated but their interaction is demonstrated and exampled.

Topics include:
  • Deduction amount
  • Wage/capital limit
  • Qualified business income
  • A qualified trade or business
  • Specify service trade or business
  • De minimis regulatory rule
  • Domestic business

Learning Objectives:

After reading the course material, you will be able to:

  • Recognize §199A's limited effective time period, its complex calculation process, and the general exclusions, limits, and restrictions applicable to the provision.
  • Determine the §199A deduction amount, the type of W-2 wages used in calculating the wage/capital limit, and specify how the limit impacts the amount and availability of the deduction.
  • Identify qualified business income and loss, its basic components, and the ability of a taxpayer to aggregate businesses in its determination.
  • Recognize the specified services trade or business exclusion, the listed excluded services, and the important exceptions provided by the regulatory de minimis rule. Identify a domestic trade or business.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Tax Return Preparers (TRPs)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA
IRS
CTEC