Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 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
We’ll take a comprehensive, deep dive into which rentals qualify (and which might not qualify) for the 20% §199A QBID. We’ll also cover how to compute the “property” factor that can limit the QBID for higher income taxpayers.
Publication Date: October 2021
Designed For
New and experienced CPA’s who practice in the tax area or who need a better understanding of the tax law for other areas of practice.
Topics Covered
- Threshold Question: Is the Rental a Business?
- Do RE Rentals Qualify for QBID?
- Rev. Rul. 60-206: Is it Too Big a Leap?
- Triple Nets: Who Calls the Plumber?
- IRS Seems Unsure
- All Roads Lead to Rome: Importance of "Substantial Authority"
- Make Life Easier
- Clearing the Fog: Triple Net Leases and the 2nd Circuit
- Revenue Procedure 2019-38 — Safe Harbor
- What Time Goes into the Hopper?
- Just a Safe Harbor — Don't Have to Meet for §199A QBID
- Wrapping it Up — RP 2019-38 Safe Harbor
- Goldilocks and "Just the Right Amount" of Property
- Rentals and 1099s
- Answers to Common Questions
- Ambiguity: It's a "Two-Edged" Sword
- Self Rentals → SSTBs
- Basis, At-Risk and Passive Carryovers
- Passive Owners
Learning Objectives
- Identify case law and administrative law support for taking the QBID on triple net leases
- Recognize and apply the requirements of the IRS's "safe harbor" for rental property
- Describe how to complete the IRS form that reduces the risk of preparer penalties
- Identify special risk issues for taxpayers who reside in the Second Circuit (Connecticut, Vermont and New York)
- Recognize the two requirements Section 162 defines "trade or business expenses"
- Identify court cases and how they apply to your client scenarios
- Describe which type of lease is defined in the Notice
- Recognize which IRS form you can file if the risk of preparer penalties can be reduced
- Identify which type of service qualifies as rental services for purposes of using the rental real estate safe harbor outlined in Notice 2019-7
- Describe which section the tax regulations often use the business definition outlined
- Identify when the depreciation period commences
- Recognize the rate of QBID for Qualified Business Income
- Identify which scenario fails to meet the Tax Court's definition of a rental real estate business
- Recognize which services are qualifying services for purposes of the 250 service hours requirement of the Revenue Procedure 2019-38 safe harbor
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Greg White
Greg White, CPA, taught for 14 years as an adjunct professor for Golden Gate University. He’s admitted to practice before the United States Tax Court. He is a founder and shareholder, in WGN PS in Seattle, WA. He has been named a Top 50 IRS Representation Practitioner in the U.S. by CPA Magazine and has taught for a number of professional organizations. Greg enjoys the technical side of tax, but also likes to have fun in class.