Section 199A: Schedule K-1 Reporting by Relevant Pass-Through Entities (PRK4)

Overview

Section 199A is still the hottest tax topic related to the Tax Cuts and Jobs Act of 2017. The Act created new reporting requirements for relevant pass-through entities (RPEs). Each RPE is required to report the relevant data needed to calculate the §199A deduction to each recipient of Schedule K-1. Your clients will trust you to ensure that the relevant data is properly reported. The IRS has added disclosure lines to Schedules K-1 for S corporations, partnerships, and trusts. This course will cover the new reporting requirements on those forms and discuss uncertainties that still exist related to the reporting requirements. The course includes examples and case studies relevant to the new disclosure lines of Schedules K-1. This program will include the latest relevant IRS guidance.

Highlights

• The latest guidance from the IRS provided through regulations or administrative announcements
• Reporting requirements for all relevant pass-through entities
• Reporting for multiple activities within one entity
• Allocating common items among multiple activities
• Section 199A Schedule K-1 reporting for tiered entities 
• Calculating and reporting qualified wages and the unadjusted basis immediately after acquisition of qualified property
• Allocating §199A relevant amounts to beneficiaries of trusts using DNI
• Handling separately stated items for which qualified business income status is determined at the shareholder or partner level
• The effects of ownership changes on §199A reporting on Schedule K-1
• Reporting publicly traded partnership income and REIT income to the partners or shareholders
• Reporting aggregated activities
• Allocating §199A amounts to partners when special allocations have been made by the partnership

Prerequisites

A basic understanding of the §199A deduction

Designed For

Any tax practitioner seeking a better knowledge of the Schedule K-1 reporting requirements related to §199A

Objectives

• Understand how to complete the required Schedule K-1 disclosures related to §199A
• Understand how to allocate §199A relevant amounts to shareholders, partners, and trust beneficiaries
• Understand how to calculate the amounts of wages and unadjusted basis immediately after acquisition of qualified property
• Use case studies to reinforce the learning objectives

Preparation

None