Calculating Wages for W-2 Limitations Under Section 199A: New IRS Guidance on Permitted Methods
Rev. Proc. 2019-11 Unmodified Box Method, Modified Box 1 Method, Tracking Changes Method, Allocation Challenges
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers to pass-through entities with a deep and practical guide to determining eligible W-2 wages for purposes of calculating the Section 199A deduction limitations. The panel will go beyond the basics to detail the Service's position in Revenue Procedure 2019-11 on allowable methods of calculating W-2 wages and will discuss regulations relating to allocating wages across multiple activities. The webinar will also discuss the phase-in of the wage limitations and describe the interrelation between wage and property limitation for purposes of calculating the 199A deduction.
Outline
- Section 199A W-2 wages and property limitations
- Rev. Proc. 2019-11 permissible methods
- Unmodified box 1 method
- Modified box 1 method
- Tracking changes method
- Cross-reference to Section 6051 wages definitions
- Allocating W-2 wages to QBI activities
- Aggregation questions
- Definition of W-2 wages for QBI calculations and limits
- Allocating W-2 wages to PTE owners
- Impact of reasonable compensation requirements on QBI deduction calculations
Faculty
Alexa Claybon
Principal | National Tax Department
Ernst & Young
Ms. Claybon is a Principal in the National Tax Department - Quantitative Services in Washington, D.C. She was formerly... | Read More
Ms. Claybon is a Principal in the National Tax Department - Quantitative Services in Washington, D.C. She was formerly an Attorney-Advisor and a lead reviewer on recent guidance with the U.S. Treasury Office of Tax Policy where she focused on income tax accounting methods, R&D tax credit expenditures and the domestic production deduction. In addition, Ms. Claybon participated in the President's budget and tax reform proposals, reviewed legislative proposals and assisted other Executive Branch agencies and Treasury departments with tax issues within her area of expertise. She also assisted in the development of the Treasury Department and IRS priority guidance plan.
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Joseph C. Mandarino
Partner
Smith Gambrell & Russell
Mandarino is a Partner in the Tax Practice of Smith, Gambrell & Russell, LLP. His practice focuses on... | Read More
Mandarino is a Partner in the Tax Practice of Smith, Gambrell & Russell, LLP. His practice focuses on corporate, tax and finance law. Mr. Mandarino is involved with a wide variety of businesses and transactions, including experience with compliance, planning and M&A activities for partnerships, individuals and corporations. Mr. Mandarino writes and speaks extensively on a wide range of business, tax and finance topics.
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