Despite recent guidance, uncertainty and confusion remain while taxpayers and tax practitioners alike await final guidance on new Internal Revenue Code Section 199A. Cut through the confusion on the 20 percent deduction everyone's been talking about as two previous Simply Tax guests join host Damien Martin to discuss what we know (and what we don't) as of November 20, 2018. First, returning guest Amy Wang—American Institute of CPAs (AICPA) tax policy and advocacy senior manager—provides an update from the AICPA's Qualified Business Income (QBI) Task Force. Then, returning guest Glen Birnbaum—shareholder at Heinold Banwart, Ltd.—shares industry insights for farmers, considerations for choice of entity and more.

TIMESTAMPS OF WHAT'S COVERED

Interview with guest Amy Wang

• [ 02:29 ] Initial reactions to the proposed guidance from the AICPA QBI Task Force
• [ 03:28 ] Requested guidance included in the proposed regulations
• [ 04:27 ] Writing a comment letter in 45 days
• [ 06:10 ] Oral testimony by Troy Lewis
• [ 07:05 ] The priority concern and number one question on the proposed regulations
• [ 08:54 ] Recommendation regarding anti-base and de minimis rules
• [ 11:45 ] Prioritizing recommendations
• [ 14:17 ] Who's on the task force and how they worked together on the comment letter
• [ 15:27 ] When we'll see final guidance and the form for calculating the QBI deduction
• [ 18:27 ] The best way to learn how the calculations will work and other considerations

Interview with guest Glen Birnbaum

• [ 23:06 ] Concerns with the definition of "dealing in commodities"
• [ 24:54 ] Are farmers providing services?
• [ 27:45 ] Guidance on the QBI deduction for co-ops
• [ 29:14 ] Rental trade or business considerations for farmers
• [ 31:06 ] Should you take 199A-related action while we await final guidance?
• [ 34:26 ] Tax reform-related takeaways from Chuck Levun and Michael Cohen
• [ 39:49 ] What it means that equipment no longer qualifies for like-kind exchanges

BIO FOR GUESTS

Amy Wang is a member of the AICPA Tax Policy & Advocacy Team, whose mission is to serve the public interest by helping AICPA members be the most trusted professional providers of tax services while also advocating sound tax policy and effective administration. She plays a key role in the development of AICPA testimony for tax-related congressional hearings.

Connect with Amy on LinkedIn | Follow Amy on Twitter

Glen Birnbaum is a shareholder at Heinold Banwart, Ltd., where he provides accounting and tax advisory services for a range of entities including agriculture, manufacturing and contracting companies. In particular, he enjoys tax planning and working with clients on succession planning and new initiatives.

Connect with Glen on LinkedIn | Follow Glen on Twitter

ADDITIONAL RESOURCES

Mentioned by Amy on the podcast

• AICPA Tax Reform Resource Center
• AICPA oral testimony for IRS hearing on REG-107892-18 QBI deduction
• IRS draft tax forms

Mentioned by Glen on the podcast

• Levun Goodman & Cohen, LLP Tax Planning Forum

More on Section 1202: Episode 26 – Is Section 1202 for You?

More on choice of entity considerations under the Tax Cuts and Jobs Act.

MORE ON SECTION 199A

Articles

• White Paper
• Proposed Regulations Issued August 8
• Grain Glitch Fix

Summaries

• Flow Chart
• Specified Service Trades or Businesses
• Aggregation Rules

Podcast Episodes

• Episode 8 – The Nitty Gritty—of Section 199A—with Tony Nitti
• Episode 16 – AICPA's 199A Task Force
• Episode 35 – The Proposed 199A Regulations with Tony Nitti
• Episode 37 – #TaxTwitter Answers to 199A Questions

Webinars

• Insights & Planning Points from the Proposed §199A Regulations (August 22)
• Pass-Through Considerations of Tax Reform (January 23)

BKD Advocacy

• Comment Letter

GET MORE SIMPLY TAX

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram