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

Note: CLE credit is not offered on this program

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


Conducted on Thursday, June 17, 2021

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will provide needed guidance for tax advisers and professionals to calculate the qualified business income (QBI) deduction and complete Forms 8995 and 8995A for 2020. 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 provides a 20 percent deduction for qualified business income (QBI). Form 8995, Qualified Business Income Simplified Calculation, and Form 8995A, Qualified Business Income, provide the IRS with details of the calculation of the 20 percent deduction under 199A.

The latter Form, 8995A, is six pages and includes four parts and four schedules that walk practitioners through the 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 percent of their receipts are from personal services. Understanding how to maximize the 20 percent deduction is critical for practitioners working with businesses.

Listen as our expert panel explains completing Forms 8995 and 8995A, considerations for maximizing the 20 percent 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

Palovick, Sara
Sara A. Palovick, CPA

Tax Senior Manager
Withum Smith+Brown

Ms. Palovick specializates in real estate, and focuses most of her time in the areas of partnership and individual...  |  Read More

Taylor, Ian
Ian Taylor, CPA, MST
Senior Manager
RSM US

As a member of RSM's Pass-through Tax Consulting Group, Mr. Taylor focuses on the complex issues faced by...  |  Read More

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