Study Guide for Tax Cuts and Jobs Act: Pass-Through Deductions
The study guide is provided to guide you through the course material in a step by step format.
Reading assignments are for “Tax Cuts and Jobs Act: Pass-Through Deductions.”
1) Business Owners’ Taxable Income Below Threshold
Reading Assignment: Chapter 1 <<>> Review Questions: # 1-3
The learning objectives for this lesson are to gain an understanding of:
- Recognize a pass-through trade or business;
- Calculate the pass-through deduction for a qualified trade or business owner whose taxable income does not exceed the applicable threshold;
- Define the terms “qualified trade or business” and “qualified business income,” for purposes of the pass-through deduction; and
- Apply the carryover rules applicable to pass-through business owners who have negative combined qualified business income or qualified REIT dividends/PTP income.
2) When Taxable Income Exceeds the Threshold
Reading Assignment: Chapter 2 <<>> Review Questions: # 1-3
The learning objectives for this lesson are to gain an understanding of:
- Identify the applicable threshold amounts;
- Recognize the requirement that would enable an SSTB to qualify for an exception to disqualification for the pass-through deduction;
- Calculate qualified business income of SSTBs and non-SSTBs for business owners whose taxable income exceeds the applicable threshold;
- Recognize the methods that may be used to determine W-2 wages for purposes of the pass-through deduction; and
- Define “qualified property” as used in connection with the pass-through deduction.
3) When Taxable Income is Within Phase-In Range
Reading Assignment: Chapter 3 <<>> Review Questions: #1-2
The learning objectives for this lesson are to gain an understanding of:
- Determine when the general rule for calculating QBI is modified for § 199A deduction purposes;
- Apply the pass-through deduction rules to calculate the reduction percentage and the applicable percentage for purposes of the § 199A deduction;
- Calculate the § 199A deduction for a pass-through business whose owner’s taxable income is within the phase-in range; and
- Calculate the § 199A deduction for an SSTB pass-through business whose owner’s taxable income is within the phase-in range.
4) Specified Services Trades or Businesses (SSTBs)
Reading Assignment: Chapter 4 <<>> Review Questions: #1-3
The learning objectives for this lesson are to gain an understanding of restrictions concerning accepting assistance from:
- Recognize a qualified trade or business; and
- Identify specified service trades or businesses (SSTBs).
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