Sec. 199A Final Regs and Rental Real Estate: Oh, What a Tangled Web

Author: Bradley Burnett

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

The Qualified Business Income Deduction and Rental Real Estate--Making Sense of It All

Does rental real estate (RRE) qualify for the §199A deduction? When is a rental property a trade or business (T or B)? Does it really matter? What if the rental has net income? A loss? All of these questions have caused much confusion since the Sec. 199A Qualified Business Income Deduction (QBID) was announced as part of the Tax Cuts and Jobs Act of 2017.

The answers to these questions and more will be provided by experienced instructor and practitioner Bradley Burnett, JD, LL.M. in this two-hour course.

Publication Date: February 2019

Designed For
All CPAs, EAs, tax staff, and those who advise real estate businesses will benefit from this program.

Topics Covered

  • TCJA — Comparing Top Income Tax Rates
  • Choose: §199A Proposed or Final Regs
  • §199A Final Regulations
  • QBID and Rental Real Estate
  • Is Rental Real Estate a Business?
  • Is the safe harbor all it's cracked up to be?
  • Interaction of §199A and §6662 Accuracy Penalty
  • Loss Limitation ‐ Hurdles
  • SSTB — Crack and Pack Strategy
  • SSTB — De Minimis Rule
  • Where Does Crack and Pack Stand After Final Regs?
  • Wage or Wage/Property Limit
  • Effect of Business Losses on QBID
  • §199A and Aggregation
  • QBID — Which Side of the Fence? A New Thinking Process

Learning Objectives

  • Identify how the Sec. 199A Qualified Business Income Deduction can apply to Rental Real Estate
  • Describe the pros and cons of the "safe harbor" provisions provided by the IRS
  • Recognize how to show a "triple net lease" is affected by the Sec. 199A regs
  • Identify the top tax rate for pass-through income in 2018 as a result of the TCJA
  • Recognize the reduced based on the new QBI deduction
  • Describe correct statements with respect to considerations around rental real estate as a business
  • Identify an area related to aggregation that was impacted by the final regulations
  • Recognize the choices a taxpayer has with respect to Section 199A
  • Identify the clarifications on each area of the final Section 199A regulations
  • Describe when the QBI deduction is available
  • Recognize the IRS Safe Harbor Notice 2019-7 and how it applies to taxpayers
  • Identify which rental services included based on the rental real estate safe harbor
  • Identify which professions are outside the scope of SSTB based on the final regulations
  • Describe what year you can elect to aggregate on an amended return, based on final regulations

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55.00

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