"Big Four” Updates: Section 199A, Net Operating Losses, Business Interest Limitation and $250,000/$500,000 Loss Limitation (BG4U)

Lance Weiss, CPA, CVA, Edward A. Renn, Esq., Karen E. Davis, EA, Michael J. Tucker, JD, CPA (moderator)
  • 3
  • Update
  • Taxes
On-site : Not available; please select a webinar
Webinar : July 08, July 16
Broadcast Times

Individual course: $91
Best Value: All-Star Tax Season Pass
Volume Discounts: 
Click here for details.

Overview

The Tax Cuts and Jobs Act (TCJA) provided four new or significantly modified tax changes taking effect in 2018 that have challenged tax practitioners from the moment they were enacted. Three of these provisions were disadvantageous to many taxpayers, though the 20% QBI deduction works to the advantage of many taxpayers. Each of these changes was characterized by a good deal of technical complexity and multiple attempts by the IRS to clarify and explain.

The CARES Act changed the three provisions that were disadvantageous to taxpayers for the year 2020 and certain prior years and made temporary taxpayer favorable changes to these provisions in an attempt to alleviate the economic distress caused by the coronavirus pandemic. In many cases, the CARES Act provides an immediate opportunity to generate cash through a refund related to amending a prior year return for taxpayers that had previously paid more tax due to the TCJA changes.

By attending this program, tax practitioners will learn how to assist clients obtain immediate refunds brought about by the 2020 changes to three of the four tax provisions.  We also spend time covering issues relating to the 20% QBI deduction, particularly as relates to how the Specified Service Trade or Business exception works to the disadvantage of certain taxpayers and when a rental activity is eligible for the QBI deduction.

By attending this program, tax practitioners will be able to help their clients comply with and benefit from these complex rules, as changed by the CAREs Act. This program is a review,  analysis and update of these four provisions, designed to bring tax practitioners up to date in terms of both compliance, tax planning and how to immediately use the CARES Act changes to the benefit of clients.

Major Topics:

  • New rules for net operating losses and how to use 2019 and 2018 NOLs to  generate an immediate tax refund for certain clients
  • Elimination of  the $250,000/$500,000 loss limitation provision and the impact of that elimination on net operating losses
  • Favorable Section 163(j) changes that eliminate the limitation on business interest for certain taxpayers
  • Update regarding the Section 199A deduction, including aggregation, Specified service Trade or Businesses, and the election to treat rental property as a trade or business for Section 199A
  • How to obtain refunds for clients quickly in light of these changes

Learning Objectives

  • Understand the application of the “big four” statutory provisions and planning strategies associated with their implementation

 

Tax practitioners who anticipate advising clients with respect to the “big four”

A basic understanding of the tax rules relating to individual income tax

None

Yes

Yes

Varies by state. Check back soon for details