2024 LLCs: Reducing Self-employment Tax and Maximizing the 20% Passthrough Deduction
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Join experienced tax practitioner Greg White, CPA, for this two-hour CPE course providing a broad overview of self-employment tax application to LLC members, including up-to-the-minute changes in this fast-changing area.
Greg will also cover how the Tax Cuts and Jobs Act affects decision-making in gray areas, and when LLCs provide a better tax result for owners. You will learn how LLCs can be used to increase the qualifying business income deduction (20% passthrough deduction). And we’ll cover how LLCs should consider changing the guaranteed payment structure to increase the new 20% passthrough deduction. Greg will also explain the benefits of paying SE tax (an often-overlooked element of planning).
Publication Date: November 2024
Designed For
CPAs, EAs, and those with experience in income tax issues for passthrough entities including preparation of Forms 1065 for LLCs.
Topics Covered
- Self-employment tax on rental properties that are businesses
- Self-employment tax for partners
- There's a huge battle between the IRS and hedge funds
- What about LLC members
- Current guidance
- Proposed regulations
- Case law
- Paying more SE tax is sometimes a good thing
- Section 199A 20% QBID deduction
Learning Objectives
- Recognize when self-employment tax doesn't apply to LLC members
- Identify and apply self-employment principles to LLC members
- Describe how to maximize LLC's 20% passthrough deduction
- Recognize how to adjust guaranteed payments to maximize the 20% passthrough deduction
- Identify the year the original limited partner exception was enacted
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Experience in preparing Forms 1065 for LLCs.
Advance Preparation
None
