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

We’ll take a comprehensive, deep dive into the final regulations and the real estate “safe harbor” provided in Revenue Procedure 2019-38.

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 put SSTBs (like doctors, lawyers, consultants, etc.) “under the microscope” with a deep exploration of the SSTB rules.

We’ll also cover many 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 do recently released IRS “Frequently Asked Questions” 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)?

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?
  • Real estate safe harbor (Rev. Proc. 2019-38)
  • 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)
• 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 (4 hours)

Program Prerequisites
Basic understanding of Section 199A.

Advance Preparation
None