The Section 199A Pass-Through Deduction

Section 199A Pass-Through Deduction

The Tax Cuts and Jobs Act (TCJA) affects the tax planning and income tax liability for many taxpayers. Among those for whom the TCJA will have a more significant effect are business owners of pass-through trades or businesses who may be eligible for the TCJA’s pass-through deduction. The Section 199A Pass-Through Deduction course examines this deduction. 

Upon completion of this course, a student should be able to:

  • Apply the rules to compute the § 199A deduction for pass-through business owners;
  • Determine W-2 wages and the unadjusted basis of qualified property immediately after its acquisition (UBIA);
  • Define qualified business income (QBI), qualified REIT dividends and qualified publicly traded partnership (PTP) income and the special rules applicable to them;
  • Recognize the aggregation rules applicable to the § 199A deduction; and
  • Identify the trades or businesses considered specified service trades or businesses (SSTBs) that may be ineligible for the pass-through deduction.

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