The Tax Cuts and Jobs Act of 2017 (TCJA) 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. This course will examine the pass-through deduction authorized under § 199A of the TCJA.
The text is conceptually divided into three sections: First, calculation of the pass-through deduction for business owners whose taxable income does not exceed a threshold amount set by statute; second, calculation of the pass-through deduction for business owners whose taxable income is greater than the threshold; and finally, calculation of the pass-through deduction for business owners whose taxable income is greater than the threshold and whose businesses are considered specified service trades or businesses (SSTBs). The final chapter examines each of the business categories that are considered specified service trades or businesses and identifies those businesses that might appear to be placed in those categories but which would not be deemed SSTBs.
Course Publication Date:
May 07, 2025
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$30.00!
| Author: | Paul Winn |
| Course No: | TAX-199APASS-3175 |
| Recommended CPE: | 3.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Taxes
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Learning Objectives
- Recognize a pass-through trade or business.
- Calculate the pass-through deduction for a qualified trade or business owner whose taxable income does not exceed the applicable threshold.
- Define the terms “qualified trade or business” and “qualified business income,” for purposes of the pass-through deduction.
- Apply the carryover rules applicable to pass-through business owners who have negative combined qualified business income or qualified REIT dividends/PTP income.
- Identify the applicable threshold amounts.
- Recognize the requirement that would enable an SSTB to qualify for an exception to disqualification for the pass-through deduction.
- Calculate qualified business income of SSTBs and non-SSTBs for business owners whose taxable income exceeds the applicable threshold.
- Recognize the methods that may be used to determine W-2 wages for purposes of the pass-through deduction.
- Define “qualified property” as used in connection with the pass-through deduction.
- Determine when the general rule for calculating QBI is modified for § 199A deduction purposes.
- Apply the pass-through deduction rules to calculate the reduction percentage and the applicable percentage for purposes of the § 199A deduction.
- Calculate the § 199A deduction for a pass-through business other than an SSTB whose owner’s taxable income is within the phase-in range.
- Calculate the § 199A deduction for an SSTB pass-through business whose owner’s taxable income is within the phase-in range.
- Recognize a qualified trade or business.
- Identify specified service trades or businesses (SSTBs).