Section 199A Qualified Business Income Under 2017 Tax Cuts and Jobs Act

Author: James R. Hamill

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

Join James R. Hamill, CPA, Ph.D., for a discussion of how the Section 199A deduction works. You’ll learn how to compute the Section 199A deduction for taxpayers above the threshold income level and for other taxpayers, identify the lowest deduction that can be taken by a service business, and more.

Publication Date: February 2018

Designed For
CPAs, EAs, tax preparers and other tax professionals with responsibility for advising clients with business income on their tax returns.

Topics Covered

  • Computation of the Section 199A deduction
  • Limits based on taxable income of the qualified business
  • Limits based on the taxpayer's taxable income
  • Phase-out computations for a service business
  • Wage or wage/capital limitations on non-service businesses
  • Planning to control taxable income
  • Impact of Section 199A on purchase price allocations
  • How to determine unadjusted basis of business assets
  • What is a service business
  • What is business income
  • Reporting issues for flow through entities

Learning Objectives

  • Compute the Section 199A deduction for taxpayers above the threshold income level and for other taxpayers
  • Identify planning opportunities to maximize the deduction
  • Define a service business as that term is used in Section 199A
  • Differentiate types of income
  • Describe reporting and income limitations related to the 20% deduction
  • Identify capital purchase price allocations
  • Differentiate how tests apply to a single rental property
  • Recognize ancillary issues with respect to the tax act
  • Identify correct statements regarding flow through entities
  • Identify and apply results of the TCJA
  • Identify the 20% deduction phase-out end for married filing jointly taxpayers
  • Describe unadjusted basis of depreciable property
  • Identify classes of capital assets increase the capital base and possibly the qualified business income limit
  • Identify the lowest deduction that can be taken by a service business
  • Recognize how non-QBI deductions can help increase the QBI deduction

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxation for individuals and pass-through entities.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $111.00

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