New QBI Forms 8995 and 8995A: Interpreting Evolving Guidance on SSTBs and the 20% Deduction

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, December 10, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide needed guidance for tax advisers and professionals calculating the qualified business income (QBI) deduction and completing new forms 8995 and 8995A for 2019. The panel will discuss the completion of the new forms, including the latest developments with QBI and specified service trades or businesses (SSTBs).

Description

Section 199A provided a 20% deduction for qualified business income (QBI). In 2018 taxpayers made the QBI calculation for the deduction on a worksheet that they retained. New for 2019, taxpayers must include these calculations with their returns. The IRS issued the draft forms about a month after the final regulations and Notice 2019-7 were issued. New Form 8995, Qualified Business Income Simplified Calculation and Form 8995A, Qualified Business Income, provide the IRS with details of the calculation of the 20% deduction under 199A.

The latter Form, 8995A is six pages and includes four parts and four schedules that walk practitioners through aggregation of business operations (Schedule B and Part 1), loss netting and carryforward (Schedule C), determining your QBI deduction (Part IV), calculating the phase-in reduction (Part III), and other calculations.

There are steps tax preparers can take to maximize the QBI deduction. These include aggregating businesses for QBI--this election is irrevocable and requires careful consideration. Real estate can qualify for the QBI deduction if it is part of a trade or business. There is a safe harbor to make this determination. Special de minimis rules allow businesses with less than $25 million in gross receipts to avoid the SSTB classification if less than 10% of its receipts are from personal services. Understanding how to maximize the 20% deduction is critical for practitioners working with businesses.

Listen as our panel of experts explains completing new Forms 8995 and 8995A, considerations for maximizing the 20% QBI deduction, and the latest developments under 199A.

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Outline

  1. QBI--an overview
  2. Form 8995
  3. Form 8995A
  4. Review of the final regulations
  5. Maximizing the QBI deduction
    1. Aggregation
    2. De minimis calculations
    3. Real estate safe harbor
    4. Other considerations

Benefits

The panel will review these and other vital issues:

  • The specifics of completing Forms 8995 and 8995A
  • Important considerations when aggregating real estate
  • How to qualify for the real estate safe harbor
  • Determining what is and is not an SSTB

Faculty

Capdevielle, Cliff
Cliff Capdevielle

Managing Attorney
Moskowitz

Mr. Capdevielle has been developing sophisticated tax planning strategies and resolving tax disputes for clients more...  |  Read More

Lovett, Brian
Brian T. Lovett, CPA, JD

Partner
WithumSmith+Brown

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses,...  |  Read More

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