Tax reform has produced great opportunities and significant traps for the unwary. This is especially true for real estate investors and availing themselves of the Section 199A deduction. In addition to covering the quantitative financial benefit provided by 199A & the basic mechanics, this class will cover the following points:

o The trade or business issue, including:
o The favorable presumption for self-rentals
o Primary source materials which shed light on how the courts and the Service define the term
o Consistency issues and defending Trade or Business status
o The safe harbor for rental real estate enterprises provided in Notice 2019-07 & Notice 2019-38 which was released for publication on September 24, 2019
o The problem with NNN leases and re-drafting agreements
o 199A Aggregation Elections:
o When it works v. when it does not
o The 6-prong test to determine whether businesses can aggregate
o The permanency of the election and whether making it is prudent
o The election in tiered entities
o SSTBs Self-rentals – an unfavorable rule
o Attribution of ownership interests under 267(b) & 707(b)
o Understanding Qualified Property, including:
o What Qualified Property includes and what it does not
o How Unadjusted Basis in Qualified Property (UBIA) is calculated
o The concept of “vanishing basis”
o Depreciation Methods & UBIA
o The impact of accelerated cost recovery methods such as 179 deductions & bonus depreciation
o Cost segregation
o Capitalization v. expensing rules
o How the seasoned practitioner can sleepwalk into a mistake,
o Turn their thinking upside down to benefit their client, and or
o Spin straw into gold for their clients
o The new mathematics of using leverage in-light of 199A
o Debt financed distributions – a trap for the unwary 199A planner
o UBIA after 1031 & 1033 exchanges
o UBIA maximization & estate planning
 Planning to make a 754 election
 Capturing the 1014(a) “step-up” in basis

Your certificate will be awarded upon successful completion of the course requirements which include a video lecture that will be followed by a 10 question final exam.