Sec. 199A: A to Z- A Comprehensive Approach to the Biggest Tax Break in Decades (Full-Day Webinar) (Completed)

Date: Thursday, June 27, 2019
Instructor: Greg White
Begin Time:  7:00am Pacific Time
8:00am Mountain Time
9:00am Central Time
10:00am Eastern Time
CPE Credit:  8 hours for CPAs
8 hours Federal Tax Law Updates for EAs and OTRPs
8 hours Federal Tax Updates for CTEC

We’ll take a comprehensive, deep dive into the final regulations and the real estate “safe harbor” provided in Notice 2019-07.

Coverage will include qualification of real estate under triple net leases, specified service trades or businesses, aggregation of real estate rentals, maximizing §199A when selling a business, strategies for maximizing the UBIA (property factor) and W-2 wages. We’ll provide sample aggregation disclosures and Notice 2019-07 statements. We’ll also cover thorny issues:
• Is QBI reduced by charitable contributions a partnership or S corp makes?
• Do LLC members have to receive a “reasonable amount” of guaranteed payments for services?
• Does the rental of a single piece of property qualify for the §199A deduction?
• What does the recently released IRS publication tell us about §199A?
• How do passive loss carryovers affect QBI?
• Should your clients with rental properties be issuing Forms 1099 to service providers (like plumbers)?

This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.

Who Should Attend
New and experienced CPA’s who practice in the tax area or who need a better understanding of the tax law for other areas of practice.

Topics Covered

  • Mechanics of the new qualified business income deduction (QBID)
  • Which income qualifies for the 20% deduction?
  • When do real estate rentals qualify?
  • Does royalty income qualify?
  • Which set of regulations should you apply for the 2018 year? Both are available. But, it's all or nothing. We'll compare and contrast the proposed regs and final regs so you can make the right choice for each client
  • Real estate safe harbor (Notice 2019-7)
  • Qualification of rentals outside the safe harbor
  • Changes in the definition of specified service trades or businesses
  • Aggregating businesses for purposes of the wage and property limits
  • Can a passive investor qualify for the deduction?
  • Changes in the rules for computing the "property factor": Including rules for like-kind exchanges and partnership step-ups.
  • Practical strategies to assist your clients in qualifying for the QBID
  • What amount of wages is needed to optimize the QBID?
  • What amount of property basis is needed to optimize the QBID?
  • What practical strategies are available to maximize the "property factor" (QBIA)?

Learning Objectives

  • Identify basic calculation of the 20% qualifying income business deduction ("QBID")
  • Identify the QBID limits that apply to higher income taxpayers
  • Recognize and apply the safe harbor for rental real estate (we'll provide a sample notice you can use in your practice)
  • Recognize rental real estate not qualifying for the safe harbor, determine qualification for the QBID
  • Determine whether clients are engaging in Specialized Service Trades or Businesses ("SSTB's)
  • Identify how to select the best option for the 2018 filing season: proposed or final regulations
  • Calculate the taxable income cap on the QBID that applies to all taxpayers
  • Compute the QBID arising from a medical practice in the context of a high-income doctor
  • Identify situations where sole proprietor status (or a single member LLC) would be a better tax option than an S corp

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (8 hours)

Program Prerequisites
Basic understanding of Section 199A.

Advance Preparation
None

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