Tax Cuts & Jobs Act – QBI Deduction & TCJA Update

The Tax Cuts and Jobs Act (TCJA) was a major overhaul of our tax system that has lowered the income tax rates for individual and corporate taxpayers and introduce a new 20% deduction for qualified business income (QBI) for sole proprietors and pass-through entities (starting in 2018). The cornerstone of this course is the comprehensive discussion of the newly enacted 20% QBI deduction regulations under IRC §199A and other TCJA income tax provisions affecting individuals and businesses.

Basic Course Information

• Once participants have completed this session they should be able to explain the newly enacted QBI deduction and other individual and business income tax provisions of the TCJA to their clients, colleagues and employees

This session will spend a majority of the day covering the 20% qualified business income deduction and newly issued regulations under IRC §199A. In addition, the course will review many other TCJA income tax provisions affecting individuals and businesses (i.e., sole proprietors, C & S Corporations and partnerships/LLC) with an emphasis on newly enacted income tax regulations, IRS notices and revenue procedures. Each participant will receive a copy of Pat Garverick’s award winning TCJA comprehensive reference manual. Topics include but are not limited to:

• 20% deduction for qualified business income (QBI) for sole proprietors and pass-through entities (New IRC §199A regulations)
• Individuals - reduction to the income tax rates and modifications to the AMT and kiddie tax calculations
• C corporations - reduction to the income tax rates, AMT repeal and modifications to the dividend received deduction
• Partnerships - technical termination rule repeal and §743 substantial built-in-loss changes
• S Corporations - new distribution ordering rules for eligible terminated S corporations
• New excess business loss limitations
• Modifications to the net operating loss (NOL) rules
• Changes and increases to both the §179 expense and bonus deprecation and other depreciation changes for farmers
• Modifications to fringe benefits including the elimination of entertainment expenses
• Elimination of like-kind exchanges for personal property
• Modifications to the individual standard deduction, itemized deductions and personal exemptions
• Reduction of the individual mandate tax (i.e., shared responsibility payment) to zero
• New business interest expense limitations
• Expansion of the cash method of accounting and exemption from percentage of completion method