Qualified Business Income Deduction (Section 199A): A Deeper Dive into Applying IRS Final Regulations & Revenue Procedures Webinar

To provide accountants and tax professionals with a practical understanding of the Section 199A Qualified Business Income deduction, including recent legislative updates, current reporting requirements, IRS final regulations, and revenue procedures. 

• Overview of Section 199A and recent legislative changes under the Tax Act of 2025
• Permanent extension of the Qualified Business Income deduction
• Income thresholds and phase-out ranges under current law 
• Revenue Procedure 2019-38 rental real estate safe harbor
  – Requirements for rental real estate to qualify as a trade or business
  – Rental services versus non-rental services
  – Excluded rental arrangements
  – Self-rental safe harbor
  – Procedural and recordkeeping requirements
• IRS FAQs affecting rental real estate activities
• In-depth analysis of the Final Section 199A Regulations
  – Treasury Regulations 1.199A-1 through 1.199A-6
• Computing the Section 199A deduction
  – QBI deduction formulas and computational examples 
  – Income limitations and phase-outs
  – Form 8995 and Form 8995-A
     • Form 8995-A reporting requirements
• Examination of Qualified Business Income (QBI)
  – Income included and excluded from QBI
  – Qualified REIT dividends
  – Qualified Publicly Traded Partnership (PTP) income
  – Allocation of items among multiple trades or businesses
• Negative QBI amounts, loss netting, and carryover rules
• W-2 wage limitations
  – Definition of W-2 wages
  – Determining who qualifies as an employee
  – Revenue Procedure 2019-11 wage computation methods
• Unadjusted Basis Immediately After Acquisition (UBIA)
  – Qualified property requirements
  – Improvements to qualified property
  – Property that does not qualify
  – Depreciable periods
  – Like-kind exchanges and involuntary conversions
• Optional aggregation rules
  – Eligibility requirements
  – Ownership and control tests
  – Individual and RPE aggregation rules
  – Required elections, reporting, and consistency requirements
  – Required tax return disclosures
• Specified Service Trades or Businesses (SSTBs)
  – Definitions and examples
  – Effect of SSTB status
  – Employee versus independent contractor rules
  – Former employee presumption
  – De minimis rules
  – Common ownership and related-party rules
• Reporting by flow-through entities
  – Schedule K-1 reporting
  – Required information for owners
• Relevant Pass-Through Entity (RPE) computational and reporting rules
• Trust and estate rules
  – Grantor trusts
  – Non-grantor trusts
  – Electing Small Business Trusts (ESBTs)
• Practical examples illustrating IRS guidance and common compliance issues
• Planning strategies for applying the Section 199A deduction while complying with current IRS rules

To provide accountants and tax professionals with a practical understanding of the Section 199A Qualified Business Income deduction, including recent legislative updates, current reporting requirements, IRS final regulations, and revenue procedures. 

DETAILED LEARNING OBJECTIVES

• Explain the purpose and legislative history of the Section 199A Qualified Business Income deduction

• Describe the changes made to Section 199A under the Tax Act of 2025

• Identify the taxpayers eligible to claim the Section 199A deduction

• Explain when a rental real estate activity qualifies as a trade or business for purposes of Section 199A

• Describe the safe harbor requirements of Revenue Procedure 2019-38

• Identify activities that qualify as rental services under Revenue Procedure 2019-38

• Distinguish between rental services and activities excluded from the safe harbor requirements

• Explain the operational rules contained in Treasury Regulation §1.199A-1

• Determine which items are included in and excluded from Qualified Business Income

• Apply the overall limitations used to compute the Section 199A deduction

• Explain the W-2 wage limitation applicable to the Section 199A deduction

• Identify qualified property and explain the role of UBIA in computing the deduction

• Describe the approved methods for calculating W-2 wages under Revenue Procedure 2019-11

• Explain the treatment of qualified REIT dividends and qualified publicly traded partnership income

• Apply the aggregation rules under Treasury Regulation §1.199A-4

• Identify the ownership and operational requirements necessary to aggregate qualified trades or businesses

• Explain the reporting requirements associated with aggregation elections

• Identify the trades or businesses classified as Specified Service Trades or Businesses under Treasury Regulation §1.199A-5

• Explain the presumption applicable to former employees under the Section 199A regulations

• Distinguish between qualified trades or businesses and Specified Service Trades or Businesses

• Describe the reporting responsibilities of Relevant Pass-Through Entities

• Identify the information pass-through entities must provide to owners for purposes of computing the Section 199A deduction

• Explain the role of trusts and estates in applying the Section 199A deduction

• Identify the circumstances under which Forms 8995 and 8995-A are used to calculate the Section 199A deduction

• Apply the Section 199A regulations and related IRS guidance to common tax planning and compliance situations

• Overview of Section 199A and recent legislative changes under the Tax Act of 2025
• Permanent extension of the Qualified Business Income deduction
• Income thresholds and phase-out ranges under current law 
• Revenue Procedure 2019-38 rental real estate safe harbor
  – Requirements for rental real estate to qualify as a trade or business
  – Rental services versus non-rental services
  – Excluded rental arrangements
  – Self-rental safe harbor
  – Procedural and recordkeeping requirements
• IRS FAQs affecting rental real estate activities
• In-depth analysis of the Final Section 199A Regulations
  – Treasury Regulations 1.199A-1 through 1.199A-6
• Computing the Section 199A deduction
  – QBI deduction formulas and computational examples 
  – Income limitations and phase-outs
  – Form 8995 and Form 8995-A
     • Form 8995-A reporting requirements
• Examination of Qualified Business Income (QBI)
  – Income included and excluded from QBI
  – Qualified REIT dividends
  – Qualified Publicly Traded Partnership (PTP) income
  – Allocation of items among multiple trades or businesses
• Negative QBI amounts, loss netting, and carryover rules
• W-2 wage limitations
  – Definition of W-2 wages
  – Determining who qualifies as an employee
  – Revenue Procedure 2019-11 wage computation methods
• Unadjusted Basis Immediately After Acquisition (UBIA)
  – Qualified property requirements
  – Improvements to qualified property
  – Property that does not qualify
  – Depreciable periods
  – Like-kind exchanges and involuntary conversions
• Optional aggregation rules
  – Eligibility requirements
  – Ownership and control tests
  – Individual and RPE aggregation rules
  – Required elections, reporting, and consistency requirements
  – Required tax return disclosures
• Specified Service Trades or Businesses (SSTBs)
  – Definitions and examples
  – Effect of SSTB status
  – Employee versus independent contractor rules
  – Former employee presumption
  – De minimis rules
  – Common ownership and related-party rules
• Reporting by flow-through entities
  – Schedule K-1 reporting
  – Required information for owners
• Relevant Pass-Through Entity (RPE) computational and reporting rules
• Trust and estate rules
  – Grantor trusts
  – Non-grantor trusts
  – Electing Small Business Trusts (ESBTs)
• Practical examples illustrating IRS guidance and common compliance issues
• Planning strategies for applying the Section 199A deduction while complying with current IRS rules