Video instructions and help with filling out and completing Form 2220 Deduction

Instructions and Help about Form 2220 Deduction

What did the taxpro do when his computer crashed I don't know Jim what do you do you took away its driver's license jokes bye Jim Music a tax Pro's welcome back to another edition of tax Pro Talk we're bringing you some big information around qualified business income deduction updates as well as forms availability so tune in here we go Music or any tax Pro's welcome back to another edition of tax bro talk or hashtag TPT I brought in the big guns today Jim and I are gonna be talking about tax reform I've heard a lot of things Jim from tax pros around rental real estate and qualified business income so what are some updates what's going on yeah so definitely getting a lot of questions around rental real estate and the rule so let's recap the qualified business income deduction is the new 199 a 20% deduction for all pass-through entities that would be Schedule C that would be scheduled pass throughs like s Corpse partnerships fiduciary farms rental real estates a little unique ok publication 535 that came out in draft form from the IRS page 2 says rental real estate by law does not qualify as an active trader business under Section 162 so by default it is not a qualified business income activity and will not be included as part of the qualified business income deduction now that said you can always look at the facts and circumstances to determine if that rental real estate is a 162 trader business if it is you'll mark the box that it qualifies as a qbi activity okay a couple ways to do that if they are a real estate professional and there are certain rules about being a real estate professional that will automatically qualify them as an active trader business because a real estate professional is okay so that's one way to look at it facts and circumstances you as the pro we're gonna have to make that determination about whether that rental real estate qualifies as a qbi activity seems easy enough right anything else Jim around qbi any updates I think there was something that happened a couple weeks ago right yep January 18th so we had another release of regs from the IRS they called them final final sort of a relative thing when it comes to tax reform I think they'll be a fluid here this year very fluid as we talked about all throughout this year you want to stay up on your education and continue to stay up to date so Friday the 18 the IRS came out with new regs that made some changes to the calculation so let me back up eighty-four percent of your clients eighty percent four percent of all the returns that are filed are going to use the simplified qualified business income deduction worksheets it's it's easy then the other sixteen percent are going to use the complex sheets before you get to qualified business income the latest regs made changes to back out one-half of the self-employed tacked up the self-employed health insurance and pension plans so those are all backed out of qbi before you even begin the calculations and so our products right now are being updated for that change everybody's product in the industry is being updated so that you can begin filing those returns yeah big change there yeah a lot of changes going on stay with us tax pros we're putting in a lot of work to make sure we're up to date for you in this series but as well as in your products absolutely by the way those 247 pages of regs that came out on the 18th our team is going through every bit of that and they're making sure that all of our products are compliant so that you can be confident when you file those tax returns is Music party tax Pro's so I've got another question I've been hear from everyone around forms availability for you Jim so is there an update around forms that are available not available what's going on there with forms yeah this is always the time of year when there's a few forms in the products that are not approved for filing yet and we clearly mark those with banners at the top of the forms we put Diagnostics in there to let you know let me tell you that our team is working very hard with all of the agencies federal and state agencies to update all of the forms there are still a few and even a few federal schedules right now that are not approved because they have not been final release with instructions from the agency and again we don't mark them final and ready to be file in print file until we've got instructions and all the calculations are solid good but we try to give you the best information available in the product about when we think that will be available to file again we've got Cavey articles to back that up so check those out you can usually find that information either in the product or those KBR all righty Jim we've also heard a lot about the 1040 postcard so what's an update there or information we can share out right you should know by now that the 1040 form has been retired all three of them the 1042 1040 a the EZ have been retired and we have a new 1040 that is more the it's kind of a postcard form it's a half sheet four pages one and two and then there are supplemental schedules that are each a half the page we've heard a lot of feedback from customers wanting page 1 and page 2 of the 1040 on one page to save on printing costs we've been working with the IRS to get approval to put those onto one page and