Section 199A: Applications and Challenges in 2019 (Morning Session)
Section 199A is easily the least understood topic of The Tax Cuts and Jobs Act. Your clients will look to you for explanations and best practices to maximize the 20% deduction. Pass-through entities and real estate investors stand to gain valuable tax cuts, and the average practitioner cannot afford to be uninformed on Section 199A. This course will cover all relevant facets and nuances of the deduction and enable implementation for tax returns. This program will include all IRS-issued guidance.
The Essential Multistate Tax Update (Afternoon Session)
With the largest overhaul of the federal income tax code in 30 years and the repeal of the physical presence nexus standards for sales tax in the Wayfair case, the states are working fast and furious to overhaul their tax laws. As some states scramble to fund their budgets, they continue to look for additional forms of revenue. Plan to attend this fast-paced class that covers developing topics in state taxation, ranging from individuals to pass-through entities to corporate taxpayers. This class will focus on issues of small and middle-market companies and offer guidance for minimizing tax liability and negotiating the treacherous waters of compliance.
Understand how the 20% deduction for pass-through entity owners works
Implement the benefits of this deduction for income tax returns
Understand changes in state statutes, regulations and case law
Determine how the states will treat changes under the Tax Cuts and Jobs Act
Identify areas that may require additional attention for state tax planning purposes
Identify areas that may be costly for employers or clients
Understand the “who, what, when, and where” of nexus for income and sales tax
Latest guidance issued by the IRS, whether by way of regulations or administrative announcements
What happens when the taxpayer owns multiple entities; aggregation rules
Calculating qualified business income (QBI)
How to identify a specified service trade or business
Taxable income limits on specified service trade or businesses
Maximizing the 20% deduction for pass-through entities and Schedule Cs
What happens if QBI for a given year is negative?
Whether a particular tax entity offers a greater Section 199A deduction
Whether the owner of a Schedule E with net rental income can claim the Section 199A deduction
Employees working in multiple states: Withholding issues (when to start and where to withhold) special issues depending on type of tax assessed in the state or locality
Emerging sales tax topics: Elimination of the physical presence standard in determining nexus (Wayfair case); economic nexus for remote sellers; assisting remote sellers in determining a plan of action in states that enforce economic nexus
Emerging compliance issues in the new sales tax economy
Income Tax (and other forms of tax): Economic nexus (taxation without physical presence)
Will states shift away from income tax and increase reliance on sales tax after Wayfair?
Treatment of Tax Cuts and Jobs Act by the states: presence of intangible property; is P.L. 86-272 still valid?
Pass-through problems: Nexus issues for interest owners
Treatment of the 199A deduction for pass through entities by states: Withholding issues
Practical considerations in dealing with multistate taxation: Dealing with state nexus questionnaires
When to consider voluntary compliance: Responsibility of officers, members, partners, and shareholders; planning ideas and opportunities; updates on pending federal legislation relative to state tax