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Author: |
Danny C Santucci, JD |
Course Length: |
Pages: 18 ||| Word Count: 11,955 ||| Review Questions: 10 ||| Final Exam Questions: 10 |
CPE Credits: |
2.0 |
IRS Credits: |
2 |
Price: |
$17.95 |
Passing Score: |
70% |
Course Type: |
Text - IRS Enrolled Agents |
Technical Designation: |
Technical |
Field Of Study: |
Taxes |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course provides a selected overview of the complex Section 199A passthrough business deduction created by the Tax Cuts and Jobs Act, covering its calculation and limitations.
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Frequently Asked Questions: |
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Description: |
The Tax Cuts and Jobs Act (P.L. 115-97), enacted Dec. 22, 2017, created, under §199A, a new deduction for up to 20% of qualified business income (QBI) from partnerships, limited liability companies (LLCs), S corporations, trusts, estates, and sole proprietorships for tax years beginning after Dec. 31, 2017. However, determining the §199A deduction amount and availability is a very complex multi-step process that may phase out some or all of the deduction. In the face of this complexity, the text provides a selected overview of the basic components of this below-the-line deduction. Qualified business income, taxpayer's taxable income, wage/capital limit, specified services trade or businesses, and other key components are not only defined and calculated, but their interaction is demonstrated and exemplified. |
Usage Rank: |
10000 |
Release: |
2024 |
Version: |
1.0 |
Prerequisites: |
General understanding of federal income taxation. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: Tax Cuts and Jobs Act (TCJA) - Section 199A materials category
Internal: 2025 Tax Code Updates for Individual Provisions (Course Id 2557)
External: IRS Qualified Business Income Deduction overview
External: Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
18-Jul-2026 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Passthrough Business Deduction - Section 199A Selected Overview - Mini Course - CPE course for CPAs |
Learning Objectives: |
Learning Assignment & Objectives As a result of studying the assigned materials, you should be able to meet the objectives listed below. ASSIGNMENT At the start of the materials, participants should identify the following topics for study: * Deduction amount * Wage/capital limit * Qualified business income * Qualified trade or business * Specify service trade or business * De minimis regulatory rule * Domestic business Learning Objectives After reading the materials, participants will be able to: 1. Recognize §199A's limited effective time period, its complex calculation process and the general exclusions, limits, and restrictions applicable to the provision. 2. Determine the §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. 3. Identify qualified business income and loss, its basic components and the ability of a taxpayer to aggregate businesses in its determination. 4. 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. |
Course Contents: |
Chapter 1 - Pass-through Business Deduction
Section 199A Overview Two Deductions Passthrough Entities Deduction - 199A(a) Definition of Passthrough Entity Agricultural & Horticultural Cooperatives Deduction - §199A(g) Specified Cooperative Definition Application of §199A(a) to Domestic Passthrough Entities Computing Qualified Business Income (QBI) - §199A(c)(1) Carryover of Losses for Negative Total QBI - §199A(c)(2) Qualified Items of Income, Gain, Deduction, & Loss - §199A(c)(3) Exclusions from Qualified Items - §199A(c)(3)(B) Reasonable Compensation & Guaranteed Payments - §199A(c)(4) REIT Dividends & Publicly Traded Partnership Income Determining Qualified Trade or Business or SSTB Qualified Trade or Business - §199A(d) Definition of Trade or Business - §1.199A-1(b)(14) Rental Real Estate Activities as a Trade or Business Safe Harbor Notice 2019-07 Revenue Procedure 2019-38 Aggregation - Grouping Multiple Activities Application of §199A to Qualified Trade or Businesses Specified Service Trade or Businesses (SSTBs) SSTBs Treated as Qualified Businesses Below the Threshold Amount Calculation Review Within the Phase-in Range or Width Phase-in Range or Width Applicable Percentage - §199A(d)(3)(B) In Excess of the Threshold Amount Plus $75,000 or $150,000 Restrictions & Special Rules Deduction Amount - §199A(a) Combined Qualified Business Income Amount - §199A(b) Wage/Capital & Overall Ceiling Limitations W-2 Wages Qualified Property Agricultural & Horticultural Cooperatives - §199A(g) Cooperative Definition Domestic Business - 199A(c)(3)(A)(i) Glossary |
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