Section 199A Qualified Business Income Overview - 10/31/2018 (12PM Central) (Sold Out)

Unfortunately, this session has sold out. We apologize for any inconvenience and welcome you to register for the self-study version that will be available after the webinar has aired. There will be additional information on how to register for that session on the Paychex login page.

In the meantime, please see the catalog for additional self-study courses we have on the 199A topic!

Overview of a Potential Money-Saving Deduction Updated for Proposed Regs

Effective for the 2018 tax year Section 199A allows a 20% deduction for “qualified business income.” This deduction applies to any business income earned outside a C corporation, so it will affect schedule C filers, and income earned in a partnership or an S corporation.

Join Greg White, CPA, for a quick, one-hour CPE webinar that looks at how this deduction works and answers to your clients' questions about this money-saving opportunity for Schedule C filers and those in certain LLCs, S corps, and partnerships.

The mechanics of the deduction are not that difficult, but the deduction either phases out or may be limited if taxable income exceeds a threshold amount. For service businesses the deduction can be lost when income reaches the end of the phase-out range. For non-service businesses the deduction may be limited based on the W-2 wages paid from the business or a combination of W-2 wages and unadjusted basis of property used in the business. Recent IRS guidance in the form of proposed regulations answers some questions but not all. Mr. Hamill will discuss how these regulations affect planning for 2018 returns.

Brought to you by

Who Should Attend
CPAs, EAs, tax preparers and other tax professionals with responsibility for advising clients with business income on their tax returns.

Topics Covered

• Computation of the Section 199A deduction
• Limits based on taxable income of the qualified business
• Limits based on the taxpayer's taxable income
• Phase-out computations for a service business
• Wage or wage/capital limitations on non-service businesses
• Planning to control taxable income
• Impact of Section 199A on purchase price allocations
• How to determine unadjusted basis of business assets
• What is a service business
• What is business income
• Reporting issues for flow through entities

Learning Objectives

• Compute the Section 199A deduction for taxpayers above the threshold income level and for other taxpayers
• Define a service business as that term is used in Section 199A

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of federal income taxation for individuals and pass-through entities.

Advance Preparation
None