Vermont Society of Certified Public Accountants
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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: $315.00 Price reflects early registration savings of -$50.00, good until 6/20/19
Non-Member Price: $515.00 Price reflects early registration savings of -$50.00, good until 6/20/19

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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
CPE Credits:
Taxes: 8.00
Instructors
John Evanich (2715)
John L. Evanich, Jr., CPA, is a tax partner with CohnReznick, LLP - the 11th largest CPA firm in the country. In addition to his specialization in working with professional services businesses, LLCs, LLPs, and S corporations on tax planning and other tax matters important to them, John represents taxpayers on IRS appeals and court petitions. With over 40 years of experience in public accounting, John is a past president of the Connecticut Society of CPAs (CTCPA), a past member of their Board of Governors, and a former trustee of their Educational Trust Fund. He is also a former member of AICPA Council. Mr. Evanich has lectured and written extensively on tax issues, both locally and nationally. He is a member of the American Institute of CPAs. He has also served as chairman of many CTCPA committees, most notably the Federal Taxation, State Taxation, Public Relations, and Technical Consultation Services committees. John has also testified on tax matters of concern to middle- and upper-income taxpayers, as well as small businesses, before the Ways and Means Committee of the U.S. House of Representatives, as well as various Connecticut state legislative committees. Mr. Evanich received a bachelor?s degree in accounting with honors from the University of Bridgeport, Connecticut and completed all course work in the Master?s in Taxation program at Pace University in New York City.

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.

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