Passthrough Business Deduction
Field of Study:
The Tax Cuts and Jobs Act (P.L. 115-97), enacted Dec. 22, 2017, created, under §199A, a new
deduction for up to 20% of qualified business income (QBI) from partnerships, limited liability companies (LLCs),
S corporations, trusts, estates, and sole proprietorships for tax years beginning after Dec. 31, 2017. However,
determining the §199A deduction amount and availability is a very complex multi-step process that may phase out some
or all of the deduction.
In the face of this complexity, the text provides a selected overview of the basic components of this below-the-line
deduction. Qualified business income, taxpayer's taxable income, wage/capital limit, specified services trade or
businesses, and other key components are not only defined and calculated but their interaction is demonstrated and exampled.
After completing this course you will be able to:
- Recognize §199A's limited effective time period, it's complex calcu-lation process and the general exclusions, limits, and restrictions appli-cable to the provision.
- Determine the §199A deduction amount, the type of W-2 wages used in calculating the wage/capital limit and specify how the limit impacts the amount and availability of the deduction.
- Identify qualified business income and loss, its basic components and the ability of a taxpayer to aggregate businesses in its determination.
- Recognize the specified services trade or business exclusion, the listed excluded services and the important exceptions provided by the regulatory de minimis rule. Identify a domestic trade or business.
General understanding of federal income taxation.
Type of Delivery Method:
QAS Self Study
Recommended CPE Credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and the final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org