How Code Sec. 199 Works With Passthrough Entities

The Code Sec. 199 Domestic Production Activities deduction has been one of the hottest areas of tax planning since Congress passed the 2004 Jobs Act. When using Sec. 199 for S corps, partnerships and other passthrough entities, tax planners must combine Sec. 199 rules and planning with sound understanding of the rules and planning techniques for those specific entities. Dealing with distributive shares of profits and losses and other practical questions must become part of the Sec. 199 planning process, notes James M. Kehl, CPA. Mr. Kehl has prepared a thorough review of how to put Sec. 199 to work in CCH’s just-released book-Practical Guide to the Sec. 199 Deduction. Chapter 9 of this book, available at the link below, explains how to use Sec. 199 with passthroughs and includes numerous examples and sample calculations to show you how to apply these new rules.

* * * * *

This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.


Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting