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The Tax Cuts and Jobs Act is the biggest change to the US tax code in over 30 years. It is imperative that you learn about the significant tax law changes made to the way unincorporated businesses will be taxed starting with 2018 tax year.

This course discusses the impact of the new tax law on partnerships, S corporations, Trusts and Unincorporated businesses including a detailed explanation of the new Qualified Business Income (QBI) Deduction, available only to unincorporated businesses.

Topics covered include:

  • Definition of a Qualified Business
  • Businesses included
  • Businesses excluded
  • Limitations on the Qualified Business Income Deduction
  • Reporting requirements for pass-through entities
  • Lower tax rate from QBI deduction v. lower corporate tax rate

Learning Objectives

  • Discover how the new Tax Cuts and Jobs Act benefits unincorporated businesses
  • Recognize what qualifies as Qualified Business Income (QBI)
  • Explore how to compute the Qualified Business Income Deduction
  • Discover how the Qualified Business Income Deduction may be phased-out or eliminated for  Specified Service Trade or Business (SSTB)
  • Discover how the Qualified Business Income Deduction may be subject to the W-2 wage and Unadjusted basis of qualified property (Unadjusted Basis Immediately After Acquisition - UBIA) limits
  • Explore the reporting requirements for pass-through entities, such as partnerships, S corporations and Trusts.
  • Discover insights into whether an unincorporated entity should take advantage of the QBI deduction or incorporate to take advantage of the new lower corporate tax rate.
Last updated/reviewed: May 19, 2022

15 Reviews (75 ratings)Reviews

4
Member's Profile
This is a good introduction to QBI and calculating the deduction.
4
Anonymous Author
Overall the course gave a good overview of Sect 199(A). However, it seemed that there were discrepancies or errors in some of the slides, especially with regard to threshold limits ($415K vs $450K etc). The blanket "the tax software can handle these calculations" statement doesn't give me a good feeling when I feel I must be able to forecast out whether a client may/may not get the QBI in a particular year ahead of receiving the K-1s. I guess I am looking for a few more practice problems! What surprised me...Watson v Commissioner. I will look for more classes from this instructor simply based upon what she brings from her analysis of this case.
4
Member's Profile
Well-presented, solid overview of a somewhat complex recently added tax deduction. Particularly with respect to tax instruction, I find it very beneficial when the instructor explains the rationale behind the tax rules and effective strategies to reduce taxes where appropriate. To her credit, Professor Hennig does so in certain instances. This and other taxation courses would benefit from applying this approach more thoroughly.
5
Member's Profile
Wow - understanding the QBI deduction is a real challenge!!! The instructor does a great job of laying out the rules of computing the deduction, as well as explaining how to use knowledge of the subject to help clients with tax planning. I’m planning to listen to the entire lecture again to ensure I didn’t miss any important info.
4
Anonymous Author
This course was informative and I liked how it covered a number of examples. Overall it was very helpful and I would recommend it. My only con was the presenter was perhaps too close to the mic, as I could hear every swallow and smack, along with a lot of "OK" after every other sentence and this got a bit distracting.
4
Member's Profile
Good basic instructive summary of 199A. I am thining it could be organized in a different manner. Maybe classified by various types of entities and then low medium high QBI to TI matrix to see where the break levels are. Too much of one thing or the other means no deduction.
4
Member's Profile
I like it because it has many details about the new tax provision about Qualified Business Income Deduction. CPAs and business owners all should know about it.
3
Anonymous Author
Consider calling this out as a 301 level course. It was very difficult for a 101 professional to follow this course.
5
Anonymous Author
Good course on the Qualified Business Income Deduction and the tax planning opportunities and pitfalls.
5
Member's Profile
Very informative and provided good examples. Most beneficial for business tax prepares.
4
Member's Profile
good info I'll use during tax season. have to keep writing to get cert
5
Member's Profile
I really enjoyed this course, examples were practical and realistic.
5
Anonymous Author
Challenging material for non-tax people, but fairly well-presented.
4
Member's Profile
It was informative, someone to start with for this section
5
Member's Profile
Excellent overall introduction to a complex tax topic.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  14:36Introduction to Qualified Business Income Deduction: Tax Planning Opportunities and Pitfalls
  6:23Closer Look
  4:12Sec. 199A for Moderate Income & Non-Service Provider Taxpayer
  3:09Specified Services Trades or Businesses (SSTBs)
  10:43Sec 199A for Threshold Income, Service and Non-Service Provider Taxpayer
  17:39W-2 Wages Limitation
  6:38“Unadjusted Basis Immediatley After Acquisition (UBIA)” of Qualified Property
  2:09Sec.199A for HIgh-Income, Service Provider Taxpayer
  6:15Aggregating Businesses
  8:05Reporting Issues & Conclusion
CONTINUOUS PLAY
  1:19:48Qualified Business Income Deduction: Tax Planning Opportunities and Pitfalls Full Video
Supporting Materials
  PDFSlides: Qualified Business Income Deduction: Tax Planning Opportunities and Pitfalls
  PDFQualified Business Income Deduction: Tax Planning Opportunities and Pitfalls Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM