Sec. 199A Cutting Edge Tax Strategies: The Ground Rules and Planning to Optimize the QBID

Author: Greg White

Join expert, Greg White, CPA, as he takes a comprehensive, deep dive into the ground rules of QBID. We’ll cover tax planning strategies to maximize the §199A 20% QBID.

Publication Date: September 2019

Designed For
New and experienced CPA’s who practice in the tax area or who need a better understanding of the tax law for other areas of practice.

Topics Covered

• QBID Importance
• QBID Overview
• Treatment of SE Medical, SE tax, Etc.
• Taxable Income: Identifying Hamburgers
• The Inflating Hamburger: Inflation Adjustments
• Loss Carryovers: They're a Little Bit like Hangovers
• 20% of Ordinary Taxable Income Cap
• Passive Owners
• QBID Cliffs: Maximizing Tax Savings
• Planning Importance
• Overall Planning: QBID Phase outs
• Basis, At‐Risk and Passive Carryovers
• Planning: Guaranteed Payments
• Stained: Guaranteed Payments Retain their Character In Passthroughs
• Sale of a Business
• QBID K‐1 Disclosure
• Estates and Trusts: QBID
• REITs and PTPs
• New Forms 2019: Forms 8995 and 8995‐A
• Substantial Understatement Penalty

Learning Objectives

• Identify methods to increase the QBID for LLCs and their members
• Identify methods to reduce tax on the sale of a business using the QBID
• Describe how to reduce the risk of penalties (both for clients and preparers)
• Recognize how to apply the best method to advise clients who are in the "phase out" range
• Recognize the percent Section 199A deduction allows for a deduction on qualifying business income
• Identify the amount in which phase-out of Section 199A deduction ends for single taxpayers
• Describe the likely amount of qualified business loss carryover to be carried over next year, according to the U.S. Treasury
• Describe following planning ideas can be performed for years where the ordinary income limit applies
• Recognize the shelf life of the new QBID
• Describe QBI
• Identify the approximate percentage of Americans are not impacted by the SSTB and/or wage limit with respect to the QBID
• Recognize which schedule QBID disclosures should be reported on
• Identify the threshold for estates and non-grantor trusts

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None