Objective
- Understand how the 20% deduction for pass-through entity owners works
- Implement the benefits of this deduction for income tax returns
Highlights
- Operational rules for calculating the Section 199A deduction
- Definitions that apply for purposes of the Section 199A deduction
- Computation rules and examples for individuals whose taxable income does not exceed the threshold amount
- Computation rules and examples for individuals whose taxable income exceeds the threshold amount
- Calculating the deduction for taxpayers with taxable income within the phase-in-range
- What is a specified service trade or business?
- Special rules for pass-through entities, SE tax, and net investment income tax
- Treatment of non-calendar year taxpayers
- Guidance on methods for calculating W-2 wages for purposes of Section 199A
- Requirements for aggregation of separate trades or businesses
- Anti-abuse rules targeting use of trusts
Designed For
All tax practitioners who anticipate advising clients with respect to the Section 199A 20% deductionPrerequisite
A basic understanding of the federal tax rules relating to individuals and businessesAdvanced Preparation
None