What is the Section 199A Pass-Through Deduction?

by Chelsea Rosine | Jul 25, 2019
Learn more about the Section 199A Pass-Through Deduction with WebCE’s new course
What is the Section 199A Pass Through Deduction The 2017 Tax Cuts and Jobs Act (TCJA) resulted in changes to tax planning and income tax liability for many taxpayers. One of the most notable changes established by the new TCJA is Section 199A, which concerns the type of businesses known as pass-through businesses. Pass-through businesses are those that do not pay corporate income tax at the entity level but pass income and expenses through to the owners.

For the first time, owners of pass-through businesses will be able to claim the Section 199A deduction. The tax is intended to help these businesses compete with large corporations who benefited from cuts in the corporate tax rate. Owners will be allowed to deduct up to 20 percent of qualified business income (QBI) earned on the owner’s tax return. However, Section 199A is subject to significant limitations and regulations.

WebCE’s new course, Section 199A Pass-Through Deduction, will teach you how to calculate pass through deductions for multiple businesses. You’ll also be able to define qualified business income (QBI), qualified REIT dividends and qualified publicly traded partnership (PTP) income and the special rules applicable to them. This course is designed for CPAs, EAs, and other tax-preparers who wish to better understand the recent developments in the Tax Cuts and Jobs Act, Provision 11011 Section 199A-Qualified Business Income Deduction.

We take pride in staying up-to-date with the latest tax and accounting laws and regulations. To order courses, visit our course catalog at www.webce.com or call our knowledgeable customer service team at 977.488.9308.

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