Don Farmer's Section 199A: A Deeper Dive - Florida Institute of CPAs

Overview

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Section 199A, also known as the Qualified Business Income (QBI) deduction, remains one of the most significant — and complex — provisions of recent tax reform. While many practitioners are familiar with the basic rules, the practical application continues to raise questions in areas such as aggregation, specified service trades or businesses (SSTBs), W-2 wage and UBIA limitations, and interactions with other tax provisions. With the One Big Beautiful Bill (OBBBA) permanently extending IRC 199A, it's a good time to refresh on the more intricate concepts to help lead future consulting projects.

This webinar takes an advanced, practitioner-focused dive into Section 199A, using real-world examples, case studies and problem-solving approaches. Participants will gain a deeper understanding of nuanced issues, common pitfalls, planning opportunities and the latest IRS guidance to confidently advise clients and optimize the deduction.

Highlights

Overview of Section 199A framework: QBI, thresholds, limitations, and phase-ins/outs
Detailed examination of SSTBs: definitions, gray areas, and examples
W-2 wage and UBIA of qualified property calculations
Aggregation rules: requirements, elections, and planning opportunities
Treatment of rental real estate, including the safe harbor and case law developments
Common practitioner challenges: guaranteed payments, reasonable compensation, and partnership allocations
Planning opportunities for high-income taxpayers, including entity structuring and retirement plan contributions
Impact of recent IRS regulations, revenue procedures, and court cases on Section 199A

Prerequisites

None

Designed For

Tax professionals at any level.

Objectives

By the end of this course, participants will be able to:

Analyze the mechanics of the Section 199A deduction, including the QBI, W-2 wage and UBIA components.
Identify specified service trades or businesses (SSTBs) and understand the phase-out rules.
Apply aggregation rules to evaluate when combining businesses maximizes the deduction.
Interpret recent IRS regulations, rulings and guidance that impact Section 199A planning.
Evaluate common problem areas, such as rental real estate, guaranteed payments and entity selection.
Implement tax planning strategies to optimize client outcomes under Section 199A.
Assess the interaction of Section 199A with other provisions, including self-employment tax, retirement contributions and choice of entity considerations.