Long after the Tax Cuts and Jobs Act of 2017 became law, Section 199A is still widely misunderstood. This course will cover all relevant facets and nuances of the 20% deduction, the latest relevant IRS guidance, as well as implementation issues and lessons that will be useful in advising clients on how to maximize benefits related to this provision. In addition, the Act created new reporting requirements for relevant pass-through entities (RPEs). Each RPE is required to report relevant data required to calculate the §199A deduction to each recipient of a Schedule K-1. Your clients will trust you to ensure that the relevant data is properly reported. This course will cover the new reporting requirements on those forms, as well as examples and case studies on completing the new disclosure lines of Schedules K-1.
DESIGNED FOR
Any tax practitioner seeking better knowledge of the Schedule K-1 reporting requirements related to §199A.
BENEFITS
- Understand how to complete the required Schedule K-1 disclosures related to §199A
- Understand how to allocate §199A relevant amounts to shareholders, partners, and trust beneficiaries
- Understand how to calculate the amounts of wages and unadjusted basis immediately after acquisition of qualified property
- Understand how the 20% deduction for pass-through entity owners works and implement the benefits of this deduction for income tax returns
HIGHLIGHTS
- Latest guidance issued by the IRS, whether by way of regulations or administrative announcements
- Reporting requirements for all relevant pass-through entities and for multiple activities within one entity
- Allocation of common items among multiple activities
- Section 199A Schedule K-1 reporting for tiered entities
- Calculation and reporting of qualified wages and the unadjusted basis immediately after acquisition of qualified property
- Allocation of §199A relevant amounts to beneficiaries of trusts using DNI
- How to handle separately stated items for which the status as Qualified Business Income is determined at the shareholder or partner level
- How ownership changes affect §199A reporting on Schedule K-1
- Allocating §199A amounts to partners when special allocations have been made by the partnership
- How to identify a specified service trade or business and know its taxable income limits
- The wage limitation and associated limits
- Proper treatment of REIT, PTP, and cooperative income
- Treatment of carryover amounts
- Rental activities as a trade or business and the rental safe harbor
- Completion of Forms 8995 and 8995-A
COURSE LEVEL
Basic
PREREQUISITES
A basic understanding of the §199A deduction.
ADVANCE PREPARATION
None
ADDITIONAL NOTES
Course materials are distributed electronically. To access the materials visit
My Events. Download to your laptop or tablet prior to the seminar, handouts are added as received.