The Tax Cuts and Jobs Act introduced the complex Section 199A deduction, presenting significant challenges for tax professionals navigating its intricacies. This course demystifies the Section 199A deduction, a crucial aspect of tax planning for partnerships, LLCs, S corporations, trusts, estates, and sole proprietorships. Participants will explore the multifaceted process of determining the deduction amount, addressing its phase-out conditions and applicability. The course provides a detailed overview of the essential components of this below-the-line deduction, including qualified business income, taxpayer's taxable income, and the wage/capital limit. It also examines the specific trade or businesses that are affected and the interactions between various components, supported by practical examples. This course is vital for professionals seeking to comprehend the complexities of the Section 199A deduction, ensuring accurate calculation and maximizing benefits for their clients.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Recognize Section 199A's limited effective time period, it's complex calculation process and the general exclusions, limits, and restrictions applicable to the provision.
Determine the Section 199A deduction amount, the type of W-2 wages used in calculating the wage/capital limit and specify how the limit impacts the amount and availability of the deduction.
Identify qualified business income and loss, its basic components and the ability of a taxpayer to aggregate businesses in its determination.
Recognize the specified services trade or business exclusion, the listed excluded services and the important exceptions provided by the regulatory de minimis rule. Identify a domestic trade or business.
Major Topics
Pass-through Business Deduction
Section 199A
