The 2017 Tax Reform Act added a special 20% tax deduction for non-corporate taxpayers in tax code Section 199A that will be available for the 2018 tax year. The availability of, and potential limitations on, this “qualified business income deduction" has generated many questions because of the intricacy of its application in certain situations.
In August 2018, proposed tax regulations began to answer some of these questions, providing initial guidance on how the Section 199A deduction will apply in a variety of fact patterns. Please join us for this 60-minute webinar to get a high-level overview of the operation of the deduction and a practical explanation of how the proposed regulations operate in real world scenarios.
What you will learn:
- Definition of “specified service trades or businesses”
Taxpayers, such as lawyers, accountants, doctors and consultants are engaged in such trades or businesses, potentially subjecting them to limitations on the availability and/or amount of the deduction.
- Aggregation of separate trades or businesses carried on by a taxpayer into a single trade or business and the impact of such aggregation
This is relevant to strategies that were being proposed, in advance of the proposed regulations, to “crack and pack” businesses to maximize the deduction.
- Anti-abuse rules
in addition to potentially thwarting “crack and pack” strategies, the proposed regulations also target other tax planning proposals that were intended to increase the availability and/or amount of the deduction.
James H. Combs, Partner, Leader, Tax Practice Group at Honigman concentrates his practice on corporate taxation, mergers and acquisitions, tax credit projects, and financial products taxation. He has extensive experience obtaining private letter rulings from the Internal Revenue Service and representing taxpayers in federal income tax audits.
Mary Hennessey, Partner, Tax Practice Group at Honigman. Her practice focuses on complex business transactions including domestic and cross-border mergers and acquisitions, joint ventures, and recapitalizations. She has advised clients on numerous tax issues concerning private equity and M&A activities. Mary also has advised clients on tax issues concerning partnership tax, real estate tax credit incentives, income tax planning, and tax-exempt entities.
Kurt Piwko, Partner, CPA at Plante Moran works within the National Tax Office (NTO) where he is responsible for tracking and informing clients and staff of current tax developments and addressing emerging tax issues. He frequently speaks at business, accounting, and legal events on tax considerations in mergers and acquisitions and other new and emerging tax issues.
- One (1) credit for the MI Chamber Basic or Advanced Tax Policy & Finance Compliance Certification Compliance Certification Programs.
- One (1) credit under the guidelines of the Michigan State Board of Accountancy.