Sec. 199A Planning Insights (Completed)

Learn how to Prepare Your Clients for the Biggest Tax Break in 36 Years
Put on your seatbelt and hold on. The IRS just issued final regulations for one of the most talked-about areas of taxation. These new regulations may be used on 2018 returns; in the alternative, you may use the proposed regulations. Experienced instructor and practitioner Greg White, CPA, will do a “deep dive” into the new “20% passthrough deduction” including choice of regulations – which should you pick for the 2019 tax year? Proposed or final regulations.

The IRS simultaneously issued a new safe harbor for taking the QBID rental properties (Notice 2019-07); We’ll cover the new rental real estate safe harbor in depth. The focus will be on practical planning and focused on reducing your clients’ taxes.

Who Should Attend
All EAs, CPAs, and tax professionals who advise clients on tax issues.

Topics Covered

• Calculating the 20% qualifying business income deduction (QBID)
• QBID limits for higher income taxpayers
• Rental real estate safe harbor
• Determine whether clients are engaging in Specialized Service Trades or Businesses (SSTBs)
• 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
• Be able to identify situations where sole proprietor status (or a single-member LLC) would be a better tax option than an S corp

Learning Objectives

• Identify basic calculation of the qualifying income business deduction
• Recognize and apply the safe harbor for rental real estate
• Differentiate between proposed regulations and the final regulations for 2019 returns

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxation concepts.

Advance Preparation
None