New Final Sec. 199A Regs for the Qualified Business Income Deduction (Currently Unavailable)

Author: Greg White

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 2018 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.

Publication Date: February 2019

Designed For
All EAs, CPAs, and tax professionals who advise clients on tax issues.

Topics Covered

• §199A QBID- Overview
• QBID limits for higher income taxpayers
• Specified Service Trades or Businesses (SSTBs): Guard Rails
• Wage and Property Caps— Business-by-Business
• Select the best option for the 2018 filing season: proposed or final regulations
• QBID K-1 Disclosure
• Loss Carryovers
• Do Real Estate Rentals Qualify for QBID?
• Where It Gets Foggy-Triple Net Leases and the 2nd Circuit
• Rentals- Should be Issuing Forms 1099
• Notice 2019-07: Rental Real Estate Safe Harbor
• FAQ: Answers to Common Questions
• Basis, At-Risk and Passive Carryovers
• Caviar Wage Strategies
• Goldilocks and "Just the Right Amount" of Wages (non-SSTB)
• Final Regulations
• Choosing the Right Door Proposed vs. Final Regs.
• Appendix I: When Aggregation Hurts Taxpayer

Learning Objectives

• Identify basic calculation of the qualifying income business deduction
• Recognize and apply safe harbor as it relates to rental real estate
• Differentiate between proposed 2018 regulations and the final regulations just issued for 2018 returns
• Identify what's included within QBI income
• Identify the QBI deductions for various filers
• Recognize and apply correct statements relating to aggregation
• Identify a topic area related to SSTBs where the regulations have only been proposed
• Describe which type of individual would likely be included in the SSTB classification, based on the final regulations
• Recognize which type of entity would result in all SSTB
• Differentiate court cases where the court found rental real estate was a business
• Identify an area where it gets "foggy" as it relates to rental real estate
• Identify an area where final regulations have been issued as it relates to QBID

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxation concepts.

Advance Preparation
None