The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law during the closing days of 2017, affects the tax planning and income tax liability for many taxpayers. Among those for whom the TCJA will have a more significant effect are business owners of pass-through trades or businesses who may be eligible for the TCJA’s pass-through deduction. The Section 199A Pass-Through Deduction course examines this deduction.
In examining the pass-through deduction, it does the following:
• Provides an explanation of computation of the deduction and appropriate examples;
• Considers how W-2 wages and the unadjusted basis of qualified property immediately after its acquisition (UBIA) should be determined; • Defines qualified business income (QBI), qualified REIT dividends and qualified publicly traded partnership (PTP) income and the special rules applicable to them; • Examines the aggregation rules applicable to the deduction;
• Identifies trades or businesses considered specified service trades or businesses (SSTB) and the trade or business of performing services as an employee excluded from pass-through deduction eligibility; and
• Discusses the special rules applicable to computing the pass through deduction for relevant pass-through entities (RPEs), publicly traded partnerships (PTPs), trusts and estates.
