Overview

The Tax Cuts and Jobs Act (TCJA) was a major overhaul of our tax system that lowered the income tax rates for individual and corporate taxpayers and introduced the new 20% qualified business income (QBI) deduction for sole proprietors and pass-through entities. The cornerstone of this course is the comprehensive discussion of the 20% QBI deduction final regulations under IRC §199A.   

Learning Objectives

Once participants have completed this session, they should be able to calculate and explain the QBI deduction to their clients, colleagues and employees.

Course Highlights

This session will spend the entire day covering the 20% qualified business income (QBI) deduction and final regulations under IRC §199A. In addition, the course will review many other income tax provisions affecting the QBI deduction calculation with an emphasis on newly enacted income tax regulations, IRS notices and revenue procedures. Topics include but are not limited to: 

• Detailed coverage of calculating the combined qualified business income amount (i.e., QBI component and REIT/PTP component)
• Determine what trade or businesses under §162 are eligible for the QBI deduction (i.e., rentals and specified service trades or businesses (SSTB))
• Discuss how the 20% QBI deduction (i.e., QBI component) is subject to a wage/capital limitation and SSTB income is phased-out for taxpayers with taxable income above the inflation adjusted threshold amounts
• Walk through the simplified QBI Form 8995 (i.e., taxpayers below the TI threshold amounts) and detailed Form 8995-A and related schedules
• Determine what wages and unadjusted basis immediately after acquisition (UBIA) are for those subject to the wage and capital limitations
• Look at what the definition of QBI is and what items are effectively connected with that trade or business (i.e., self-employment tax, health insurance, retirement plans)
• Review the aggregation rules for the QBI computation and both the entity and individual level
• Walk through the reporting responsibilities of partnerships and S corporations to their owners on the Schedule K-1s
• Explain how the modifications to the net operating losses (NOLs) and §461(l) excess business loss limitations affect the QBI computation