Courses

Section 199A Applications and Challenges in 2019 & Four Tiers of Loss Limitations: New Rules for Pass-through Entities (2 Courses in 1-Day!)

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Member Price: $0.00 Non-Member Price: $0.00

Date/Time:: Jun 27, 2019, 8:30am–4:30pm
Venue:: Holiday Inn Express (White River Junction, VT 05001)
121 Ballardvale Drive
White River Junction, VT 05001
Developer:: Surgent McCoy CPE, LLC

Morning Session:

Section 199A is easily the least understood topic of The Tax Cuts and Jobs Act. Your clients will look to you for explanations and best practices to maximize the 20% deduction. Pass-through entities and real estate investors stand to gain valuable tax cuts, and the average practitioner cannot afford to be uninformed on Section 199A. This course will cover all relevant facets and nuances of the deduction and enable implementation for tax returns. This program will include all IRS-issued guidance. This Couse Qualifies for CFP Credit.

Afternoon Session:

Owners of S corporations and partnerships are subject to numerous limitations on pass-through losses, each with unique rules, applications, and complexities. With the increase in popularity of pass-through business entities, it is essential for CPAs to understand the complexities and interactions of these pass-through loss limitations.

Objective

Morning Session:

Understand how the 20% deduction for pass-through entity owners works
Implement the benefits of this deduction for income tax returns

Afternoon Session:

Analyze how basis in an ownership interest in a pass-through entity is established
Discuss how activity of the entity, distributions, and optional adjustments increase or decrease basis
Discuss when basis is "at-risk" under section 465, and the resulting loss dis-allowance and carry-forward related to basis that is not at-risk
Define passive activities under section 469 and exceptions to the passive loss rules
Discuss when and how aggregation of activities should be used to avoid the passive loss rules
Analyze new section 461(l) created by the Tax Cuts and Jobs Act of 2017 and understand the limitation calculation and resulting carry-forward
Analyze the hierarchy of the loss limitations with examples of the application of the four tiers of losses and how they interact

Highlights

Morning Session:

Latest guidance issued by the IRS, whether by way of regulations or administrative announcements
What happens when the taxpayer owns multiple entities; aggregation rules
Calculating qualified business income (QBI)
How to identify a specified service trade or business
Taxable income limits on specified service trade or businesses
Maximizing the 20% deduction for pass-through entities and Schedule Cs
What happens if QBI for a given year is negative?
Whether a particular tax entity offers a greater Section 199A deduction
Whether the owner of a Schedule E with net rental income can claim the Section 199A deduction

Afternoon Session:

Tier 1: Basis limitations for S corporation shareholders and partners
Tier 2: Section 465 at-risk limitations for S corporation shareholders and partners, including the impact of debt, indemnities, guarantees, and shareholder/partner agreements
Tier 3: Section 469 passive loss limitations and exceptions to the limitations
Tier 4: The new excess business loss limitation of the Tax Cuts and Jobs Act of 2017 (new section 461(l))

Designed For

Morning Session:

Any tax practitioner wishing to understand and apply the 199A deduction

Afternoon Session:

Experienced practitioners who desire a refresher on loss limitations and an analysis of the new rules. Inexperienced practitioners who desire to learn the basics of all four pass-through loss limitations and their interactions in one course.