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§199A Deduction: How It Impacts 2018 Income Tax Returns (Idaho Society of CPAs)

Start time is for Mountain Standard Time (MST).

For the past several months we’ve had the text of the statute and the proposed regulations.  Now we have the final regulations which we will go over in this course. 

The filing season is upon us and shortly CPAs will begin the process of preparing actual returns claiming the benefit of the §199A deduction. This program will go over the status of the §199A regulations and other IRS guidance as we enter tax season to prepare participants for preparing 2018 returns containing this deduction. We will consider guidance issued up to the date of the program and apply it to the returns to be prepared in the near future.


  • Recognize the types of income that will be treated as qualified business income for §199A

  • Explain the significance of the threshold amounts and why it is so important in computing the deduction

  • Understand the issues raised when attempting to determine if a rental is or is not a trade or business

  • Recognize specified service trades or businesses (SSTBs) and options for working them

  • Compute the applicable W-2 wages or W-2 wages/Unadjusted Basis Immediately After Acquisition (UBIA) of Qualified Property limit

  • Recognize potential issues in your tax software’s computation of the deduction


  • Discuss the mechanical computations involved with the deduction including

    • Phase-out of SSTB income and phase-in of W2/UBIA limits

    • The taxable income limitation

    • Applying losses from one trade or business to the taxpayer’s other trades or businesses

  • Status of additional guidance that may come during or after tax season

  • Applying the rules to trusts and estates

  • Application of the special rules applicable to those receiving qualified payments from agricultural cooperatives