Top Federal Tax Issues for 2020 CPE Course: Module 2 (Currently Unavailable)
Author: Greg White, Jennifer Kowal
| CPE Credit: |
12 hours for CPAs
12 hours Federal Tax Related for EAs and OTRPs
12 hours Federal Tax Law for CTEC |
CCH's Top Federal Tax Issues Course identifies those recent events that have developed into the current “hot” issues of the day. These tax issues have been selected as particularly relevant to tax practice in 2020. They have been selected not only because of their impact on return preparation during the 2020 tax season but also because of the important role they play in developing effective tax strategies for 2020 and beyond. This module gives a detailed overview of the final Code Sec. 199A regulations for the qualified business income deduction (QBID), discusses the business advantages and disadvantages of different types of business entities, addresses common tax issues in the sale of nonpublic companies and other closely held businesses, and discusses reasonable compensation.
This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.
Publication Date: October 2019
Designed For
CPAs, Tax Professionals
Topics Covered
- New Final Sec. 199A Regs for Qualified Business Income Deduction
- QBID limits for higher income taxpayers
- Specified service trades or businesses
- Wage and property caps
- Loss carryovers
- Rental real estate safe harbor
- How to select between the proposed or final regulations for the 2018 filing season
- Choice of Entity and Tax Issue Entity Formations
- Sale of Closely Held Businesses
- Tax Cuts and Jobs Act: Impact on Reasonable Compensation for S Corporation Shareholder-Employees
Learning Objectives
- Identify the basic calculation of the qualifying income business deduction (QBID)
- Recognize and apply the safe harbor as it relates to rental real estate
- Differentiate between proposed 2018 regulations and the final regulations issued for 2018 returns
- Identify what is included within qualified business income (QBI)
- Identify the QBID for various filers
- Recognize and apply correct principles relating to aggregation
- Describe which type of individual would likely be included in the "specified service trade or business (SSTB) classification, based on the final regulations
- Recognize which type of entity would result in all SSTB income
- Identify an area where it gets "foggy" as it relates to rental real estate
- Identify the business advantages and disadvantages of various business entity structures
- Identify the tax advantages and disadvantages of various business entity structures
- Recognize the treatment of formation transactions for C corporations, S corporations, LLCs, and partnerships
- Describe potential current and future pitfalls of forming each entity type
- Differentiate tax treatment between stock sales and asset sales
- Identify when a Code Sec. 338(h)(10) election should be made and describe its consequences
- Describe how earnouts and other contingent purchase price transactions are treated under tax rules
- Identify special rules regarding taxation of intangible assets
- Recognize the business consequences of a stock sale
- State which Internal Revenue Code section states that the buyer and seller shall allocate the purchase price in the manner prescribed in Code Sec. 338(b)(5)
- Identify which asset class is allocated last with respect to a purchase price allocation as required by Internal Revenue Code Sec. 1060
- Recognize which type of property is a capital asset
- Identify what is considered a related party under Internal Revenue Code Sec. 267(b)
- Recognize when Section 197 intangibles, which include covenants not to compete, are amortizable
- Differentiate Internal Revenue Code sections and how they apply to a sale of a business
- Recognize how to determine "reasonable compensation" for S corporation shareholders
- Identify and apply the reasonable compensation rules in specific settings
- Recognize characteristics of the new QBID deduction
- Explain how to maximize S corporation shareholders' QBID
- Name the factors the courts have taken into account in determining reasonable compensation
- Identify the steps in calculating the cost of lost Social Security benefits
- Describe planning strategies with regard to reasonable compensation for S corporation shareholders
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (12 hours)
Program Prerequisites
Basic understanding of Federal tax law including preparation of Form 1120S, and familiarity with sale transactions, including how to calculate gain and loss.
Advance Preparation
None
