Tuesday, October 29, 2019
Begins at 12:00 PM Central Time
The IRS issued a long-awaited safe harbor for when real estate rental qualifies as a trade or business for purposes of the 20% deduction for qualified business income under IRC § 199A. We will review the rules for rental under Code § 199A and explain how the new safe harbor fits into the framework. We will explore a smattering of recent developments in partnership tax, such as final regulations discussing employee vs. partner in tiered structures, the nature of interest expense when a partnership interest changes hands, and the effect of changes on inside basis when an interest in a tiered structure changes hands. Finally, we will discuss the income taxation of intellectual property and other intangibles in light of 2017 tax reform.
You will learn:
- Strategy for qualifying real estate rental as a trade or business under IRC § 199A independent of the safe harbor.
- How the new safe harbor for real estate changed from its proposed terms and the extent to which the safe harbor helps.
- How recently finalized regulations treat compensatory payments from disregarded entities to partners in the parent partnership.
- What those regulations intentionally did not address that provide opportunities for tiered partnership structures.
- How to determine the deductibility of interest expense incurred by a partnership and how distributions from a partnership affect that determination.
- A taxpayer victory regarding how that determination changes when a partnership interest changes hands.
- How inside basis adjustments flow inside tiered partnerships.
- A new TAM that may expand the types of transfers that can trigger inside basis adjustments.
- How 2017 tax law changes curtailed favorable treatment on the sale of intellectual property.
- How the treatment of goodwill, etc. differs from the above treatment, which may inform strategies for allocating purchase price or structuring a purchase.
Approved for 1.5 hours of general CLE credit in California and
Approved for 1.8 hours of general CLE credit in Missouri
*Please note that this is a 90-minute webinar
For technical materials supporting the slides, see Steve's newsletter.
Steve's current materials, Structuring Ownership of Privately-Owned Businesses: Tax and Estate Planning Implications, are available by emailing firstname.lastname@example.org .