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Level 5
December 7, 2019
Solved

Anyone familiar with all the qualified business deduction jargon?

  • December 7, 2019
  • 16 replies
  • 18 views
If someone mows lawns on the side do they qualify? Do you have to have employees?
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Best answer by abctax55

IF the lawn mowing rises to the level of a trade or business (and YOU have to make that call, based on your professional knowledge and expertise), then QBID is on the table.

One CANNOT be one's "own employee" unless incorporated (seems a wee bit unlikely that a side business mowing lawns would be incorporated).

Wages & UBIA only come into play when certain taxable income limits are hit.

16 replies

abctax55
abctax55Answer
Level 15
December 7, 2019

IF the lawn mowing rises to the level of a trade or business (and YOU have to make that call, based on your professional knowledge and expertise), then QBID is on the table.

One CANNOT be one's "own employee" unless incorporated (seems a wee bit unlikely that a side business mowing lawns would be incorporated).

Wages & UBIA only come into play when certain taxable income limits are hit.

HumanKind... Be Both
abctax55
Level 15
December 7, 2019
"...Anyone familiar"?

I am, because I've done about 40 hours of CPE regarding QBID.

Are you talking about a teenager?

HumanKind... Be Both
CRM2182Author
Level 5
December 7, 2019
No. 40 y/o has full time job. Does mowing as a side business. He is his only employee.