DESCRIPTION
This module introduces the Qualified Business Income (QBI) deduction under IRC Section 199A and the rules that determine eligibility for the deduction. Participants explore the key components of QBI, distinguish between specified service trades or businesses (SSTBs) and non-SSTBs, and examine how net business losses affect the deduction. The module includes a detailed walkthrough of the Section 199A calculation, where participants can apply what they learn to client fact patterns by performing QBI deduction calculations. Through discussion and applied exercises, participants practice determining the allowable QBI deduction.
LEARNING OBJECTIVES
- Identify the key components that determine Qualified Business Income and the factors that impact eligibility for the deduction.
- Distinguish between a Specified Service Trade or Business (SSTB) and a non-SSTB for purposes of the Section 199A deduction.
- Calculate the Section 199A deduction using relevant client financial information and applicable limitations.
- Evaluate how net business losses affect the QBI deduction and determine how loss carryforwards impact future calculations.
