Section 199A: Deductions, Limitations, Complexities and Opportunities for Pass-Through Entities

Determining Qualified Business Income, Loss Carryover, Reformation Considerations, and More

A live 90-minute premium CLE/CPE video webinar with interactive Q&A


Thursday, October 7, 2021 (in 12 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

This CLE/CPE course will provide tax counsel, accountants, and other advisers with an in-depth understanding of Section 199A and the mechanics of calculating and claiming the qualified business income deduction. The panel will discuss the strict rules, requirements, and limitations of IRC Section 199A and provide a roadmap through many of the available planning techniques to maximize tax savings under this provision.

Description

IRC Section 199A provides certain taxpayers a deduction of net income attributable to certain qualified businesses. This deduction creates a tax benefit to sole proprietors and owners of pass-through entities carrying on qualified businesses by effectively reducing their federal income tax rate. Individuals, trusts, and estates are eligible to claim the deduction based on their share of qualified business income, but only subject to the many strict requirements of IRC Section 199A.

The deduction equals up to 20 percent of a taxpayer's qualified business income from certain trades or businesses, as well as 20 percent of qualified REIT dividends, publicly traded partnership income, and qualified cooperative dividends received by a taxpayer. The complexities of claiming the IRC Section 199A deduction require that tax advisers carefully evaluate their clients' eligibility for the deduction, determine whether action should or can be taken to maximize the deduction amount, and implement planning strategies to secure the greatest possible benefit available to each taxpayer.

Listen as our panel analyzes the requirements, limitations, and implications of 199A and provides tips for developing and implementing effective tax planning strategies to take advantage of the qualified business income deduction.

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Outline

  1. Requirements of 199A
  2. Defining qualified business income and calculating the deduction
  3. Limitations on certain types of businesses or services
  4. Phase-in of wages and capital limitations
  5. How shareholders and members of pass-through entities claim the 199A deduction
  6. Important tax planning considerations

Benefits

The panel will review these and other key issues:

  • IRS regulations
  • Benefits and limitations of the provision
  • Understanding the rules and eligibility requirements of claiming the deduction
  • Identifying qualified businesses and related income subject to the deduction
  • Understanding the limitations on the deduction, including the wage limitation and combined property and wage-base limitation
  • Exploring the phase-in of the wage-base and other income or capital limitations
  • Entity reorganization options and avoidance of pitfalls in considering the same
  • Tax planning tactics and lesser-known factors to consider

Faculty

Cox, Patrick
Patrick M. Cox

Partner
Nixon Peabody

Mr. Cox is a partner within Nixon Peabody’s M&A and Corporate Transactions practice group and member of the...  |  Read More

Gupta, Ajay
Ajay Gupta

Of Counsel
Moore Tax Law Group

Mr. Gupta is a tax litigation and criminal defense attorney with extensive private practice, government, and adjunct...  |  Read More

Attend on October 7

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Cannot Attend October 7?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

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