Section 199A Qualified Business Income and Latest IRS Guidance and Regs

Date: Friday, August 31, 2018
Instructor: James R. Hamill
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC
2 hours Income Tax Planning for CFP

IRS Guidance Clarifies Section 199A Qualified Business Income Deduction

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. On August 8, 2018, the IRS issued its long-awaited guidance on how this deduction will work for 2018 returns for affected taxpayers.

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.

Did the IRS clarify whether a business is a service business? This and more questions will be answered in this two-hour CPE webinar. Join Jim Hamill, CPA, Ph.D., for a look 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.

It may also be possible to plan to maximize the deduction when the taxpayer is otherwise in the phase-out range. This session will discuss those issues, and many others, to allow you to properly advise clients.

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

  • IRS Guidance issued August 8, 2018 on Section 199A deduction
  • 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
  • Identify planning opportunities to maximize the deduction
  • Define a service business as that term is used in Section 199A
  • Apply IRS guidance of August 8, 2018 when working with taxpayers on the QBID

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

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

Advance Preparation
None

Registration Options
Individual
Group
*Note: 3 or more qualifies for discounted Group Participant Fee

Fees
August 31 Webinar - 199A IRS Regulations and Guidance
REG199A Promotion$89
Regular Fee$99
Group Participant Fee$79

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