Home
0
Home
Use Landscape to see Search/Filter
Item Types:
Field of Study:
Authors:
CPE Hours:
Keyword:
Course Details

The Section 199A Pass-Through Deduction (Course Id 1492)

QAS / Registry / EA   Add to Cart 
Author : Paul Winn, CLU, ChFC
Status : Production
CPE Credits : 3.0
IRS Credits : 3
Price : $26.95
Passing Score : 70%
NASBA Technical: Yes
Primary Subject-Field Of Study:

Taxes - Taxes for Course Id 1492

Description :

The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law during the closing days of 2017, affects the tax planning and income tax liability for many taxpayers. Among those for whom the TCJA will have a more significant effect are business owners of pass-through trades or businesses who may be eligible for the TCJA’s pass-through deduction. The Section 199A Pass-Through Deduction course examines this deduction. 

It is conceptually divided into three sections: First, calculation of the pass-through deduction for business owners whose taxable income does not exceed a threshold amount set by statute; second, calculation of the pass-through deduction for business owners whose taxable income is greater than the threshold; and finally, calculation of the pass-through deduction for business owners whose taxable income is greater than the threshold and whose businesses are considered specified service trades or businesses (SSTBs). The final chapter examines each of the business categories that are considered specified service trades or businesses and identifies those businesses that might appear to be placed in those categories but which would not be deemed SSTBs.   

Usage Rank : 0
Release : 2019
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : Self-Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 19-Apr-2019
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.
Approved Audience :

NASBA QAS - NASBA Registry - IRS Enrolled Agents - 1492

Keywords : Taxes, The, Section, 199A, Pass-Through, Deduction, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

Upon completion of this course, the reader should be able to:
  • Apply the rules to compute the § 199A deduction for pass-through business owners whose taxable income is:
      o Not in excess of the applicable threshold,
      o In excess of the applicable threshold but not in excess of the sum of the threshold and phase-in range, and
      o In excess of the sum of the applicable threshold and phase-in range;
  • Determine W-2 wages and the unadjusted basis of qualified property immediately after its acquisition (UBIA);
  • Define qualified business income (QBI), qualified REIT dividends and qualified publicly traded partnership (PTP) income and the special rules applicable to them;
  • Recognize the aggregation rules applicable to the § 199A deduction; and
  • Identify the trades or businesses considered specified service trades or businesses (SSTBs) that may be ineligible for the pass-through deduction.

Chapter 1
Business Owners’ Taxable Income Below Threshold

When you have completed this chapter you should be able to:
  • Recognize a pass-through trade or business;
  • Calculate the pass-through deduction for a qualified trade or business owner whose taxable income does not exceed the applicable threshold;
  • Define the terms “qualified trade or business” and “qualified business income,” for purposes of the pass-through deduction; and
  • Apply the carryover rules applicable to pass-through business owners who have negative combined qualified business income or qualified REIT dividends/PTP income.

    Chapter 2
    When Taxable Income Exceeds the Threshold

    When you have completed this chapter you should be able to:
    • Identify the applicable threshold amounts;
    • Recognize the requirement that would enable an SSTB to qualify for an exception to disqualification for the pass-through deduction;
    • Calculate qualified business income of SSTBs and non-SSTBs for business owners whose taxable income exceeds the applicable threshold;
    • Recognize the methods that may be used to determine W-2 wages for purposes of the pass-through deduction; and
    • Define “qualified property” as used in connection with the pass-through deduction.

    Chapter 3
    When Taxable Income is Within Phase-In Range

    When you have completed this chapter you should be able to:
    • Determine when the general rule for calculating QBI is modified for § 199A deduction purposes;
    • Apply the pass-through deduction rules to calculate the reduction percentage and the applicable percentage for purposes of the § 199A deduction;
    • Calculate the § 199A deduction for a pass-through business whose owner’s taxable income is within the phase-in range; and
    • Calculate the § 199A deduction for an SSTB pass-through business whose owner’s taxable income is within the phase-in range.

    Chapter 4
    Specified Services Trades or Businesses (SSTBs)

    When you have completed this chapter you should be able to:
    • Recognize a qualified trade or business; and
    • Identify specified service trades or businesses (SSTBs).
  • Course Contents :

    Course Learning Objectives

    Introduction to the Course

    Chapter 1 - Business Owners’ Taxable Income Below Threshold

    Chapter Learning Objectives

    Introduction

    Overview of the Pass-Through Deduction

    Nature of the 20 percent Deduction for Qualified Business Income

    Deduction Eligibility

    Pass-Through Business

    Carryover Rules

    Carryover Rules When Total QBI Amount is Negative

    Carryover Rules When Qualified REIT/PTP Income Amount is Negative

    Computing the Deduction - Taxable Income Not Exceeding Threshold Amount

    Example 1

    Example 2

    Example 3

    Example 4

    Definitions

    Trade or Business

    Rental Safe Harbor

    Threshold Amount

    Qualified REIT Dividends

    Qualified Publicly Traded Partnership Income

    Qualified Business Income

    Section 751 Gain

    Guaranteed Payments for the Use of Capital

    Section 481 Adjustments

    Previously Disallowed Losses

    Net Operating Losses

    Qualified Items of Income, Gain, Deduction and Loss

    Qualified Trade or Business

    Aggregation

    Aggregation Rules

    Operating Rules

    Individuals

    Relevant Pass-Through Entities

    Reporting and Consistency Requirements

    Individual Reporting and Consistency Requirements

    Individual Annual Disclosure

    Relevant Pass-Through Entity Reporting and Consistency Requirements

    Relevant Pass-Through Entity Annual Disclosure

    Computational and Reporting Rules for RPEs

    RPE Computational Rules

    Reporting Rules for RPEs

    Accuracy-Related Penalty on Underpayments

    Summary

    Chapter 1 Quiz


    Chapter 2 - When Taxable Income Exceeds the Threshold

    Chapter Learning Objectives

    Introduction

    Taxable Income Above Threshold Amount

    Pass-Through Deduction when Taxable Income Exceeds the Threshold

    QBI component.

    SSTB Exclusion Rules

    Aggregated Trade or Business

    Netting and Carryover

    QBI Component Calculation

    Computing the Deduction - Taxable Income Exceeding Threshold Amount

    Determining W-2 Wages

    UBIA of Qualified Property

    Computing the Deduction - Examples

    Example 1 – No Wages Paid or Qualified Property Held

    Example 2 – Qualified Property Held

    Example 3 – A Partnership

    Example 4 – An S Corporation

    Summary

    Chapter 2 Quiz

    Chapter 3 - When Taxable Income is Within Phase-In Range

    Chapter Learning Objectives

    Introduction

    Calculating the QBI Component

    Taxpayers With Taxable Income Within Phase-In Range

    Determining the Applicable Percentage

    Calculating the Pass-Through Deduction – Modification for Non-SSTBs

    Example 1 – Non-SSTB Modification

    SSTBs and Taxpayers with Taxable Income in Phase-In Range

    Calculating the Pass-Through Deduction – Modification for SSTBs

    Example 2 – SSTB Modification

    SSTBs and Taxpayers with Taxable Income Exceeding Phase-In Range

    Summary

    Chapter 3 Quiz

    Chapter 4 - Specified Services Trades or Businesses (SSTBs)

    Chapter Learning Objectives

    Introduction

    Qualified Trade or Business

    Specified Service Trade or Business

    Trades or Businesses Considered SSTBs – Examples

    Example 1

    Example 2

    Example 3

    Trades or Businesses Not Considered SSTBs – Examples

    Example 1

    Example 2

    Example 3

    Summary

    Chapter 4 Quiz

    Appendix A

    Appendix B

    Appendix C

    Glossary

    CPE Taxes Course: https://www.cpethink.com/tax-cpa-courses
    Thank you for taking one of our free courses. Please select “Ok” so that we and the author can let you know about other free courses and special offers. If not please reply "No Thanks". Either way enjoy your free CPE course!
      
    Exam completed on .

    Do you want to add the course again?