Section 199A Passthrough Deductions

Author: Bradley Burnett

The §199A passthrough deduction cuts non-C Corp income tax rates to the lowest in 3 decades, but only for those eligible. Some higher (and lower) income taxpayers are aced out or trimmed back. Join us to learn how to make the most of the new 20% pass-through deduction.

Publication Date: June 2020

Designed For
CPAs and other interested persons desiring to learn the latest tax planning opportunities and traps under TCJA.

Topics Covered

• Complex new pass-through entity deduction (QBID) clearly explained
• Is the definition of "specified service business" (SSB) the monster it appears to be?
• Lasso income, wages and property into the right spots & maximize QBID
• What is the taxable income limitation — How to avoid its harsh impact?
• Why wages and property may be important in each business
• Aggregating - When you can, cannot, and how you must report (and continue to report)
• Winners, losers and the newly perplexed (how to help them all)

Learning Objectives

• Identify cutting edge tax planning opportunities and pitfalls under the Tax Cuts Jobs Act for the §199A deduction available to partnerships, S Corps, sole proprietorships, trusts and estates
• Recognize which types of organizations are ineligible for QBID
• Describe what is primarily impacted as a result of QBID
• Identify categories of performing arts included within the SSTB requirement with respect to the limit on QBID
• Recognize required disclosures relating to aggregated businesses
• Describe which top tax rate remained unchanged as a result of the TCJA
• Identify the five loss limitation hurdles
• Describe where aggregation is permitted based on final regulations

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
A basic understanding of TCJA.

Advance Preparation
None