2018 LLCs: Reducing Self-employment Tax and Maximizing the 20% Passthrough Deduction
Author: Greg White
||2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
How Can You Maximize the Qualified Business Income Deduction for LLCs?
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 LLC’s provide a better tax result for owners. You will learn how LLC’s can be used to increase the qualifying business income deduction (20% passthrough deduction). And we’ll cover how LLC’s 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: August 2018
CPAs, EAs, and those with experience in income tax issues for passthrough entities including preparation of Forms 1065 for LLCs
- Which LLC members are subject to self-employment tax
- How does self-employment tax apply to spouses of LLC members
- The IRS's new audit campaign for self-employment tax of LLC members
- How to minimize self-employment tax for LLC members
- Which members benefit from paying self-employment tax
- How to adjust guaranteed payments to maximize the 20% passthrough deduction
- 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 exceptions to SE tax for LLC's
- Calculate the costs of lost social security benefits
- Differentiate characteristics of the new QBID deduction
- Identify the full phase in amount for the QBID for those individuals filing as single
- Describe business for purposes of SE tax
- Identify decisions from court cases and how they apply to clients
- Recognize prerequisites of SE tax limited partnership rules in proposed regulations
- Identify what should be done next after calculating costs of lost social security benefits
- Recognize and apply §199A QBID deductions
NASBA Field of Study
Taxes (2 hours)
Experience in preparing Forms 1065 for LLCs.