2026 Passthrough Business Deduction Section 199A Selected Overview

Description

EAs and Other Tax Preparers, after passing the exam you MUST click on the link “GET YOUR CERTIFICATE” to have your hours reported to the IRS. 

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 com-ponents of this below-the-line deduction. Qualified business income, taxpayer’s taxa-ble 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 exemplified.

Learning Objectives
After reading the materials, participants will be able to:
1. Recognize §199A’s limited effective time period, its complex calculation process and the general exclusions, limits, and restrictions applicable to the provision.
2. 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.
3. Identify qualified business income and loss, its basic components and the ability of a taxpayer to aggregate businesses in its determination.
4. 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.

To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate. Clicking on the Certificate link will show the course as 100% Complete

A course evaluation form is provided for your feedback and participants have 1 year from the date of purchase/enrollment to complete this course. .

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