Is a psychiatrist operating as a Sub S eligible to take a QBI deduction and where on Pro Series is that calculated?

Forum|Forum|6 years ago
December 7, 2019
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Best answer by regina1

I read the rules as that professional/expert services don't qualify. But, I'm just now digging into the rules.

https://www.opherganel.com/New-2017-Tax-Law-Impact-Your-Therapy-Practice I would be googling specified service business and try to get some answers there. I'd probably go directly to the tax code or call the practitioner's service to confirm.

Q. Is a therapy practice considered a qualified trade or business?

A. This is one of those areas that will likely be subject to evolving rules from the IRS and bears watching. However, at first blush it appears that a therapy practice would not be considered a qualified business because (a) it is in the health field, and even if it wasn’t, (b) it can be described as a business where the principal asset of the business is the reputation or skill of one or more of its employees. Thus, a therapy practice will likely be deemed a specified service business (SSB).

R

regina1Answer

Level 3

I read the rules as that professional/expert services don't qualify. But, I'm just now digging into the rules.

https://www.opherganel.com/New-2017-Tax-Law-Impact-Your-Therapy-Practice I would be googling specified service business and try to get some answers there. I'd probably go directly to the tax code or call the practitioner's service to confirm.

Q. Is a therapy practice considered a qualified trade or business?

A. This is one of those areas that will likely be subject to evolving rules from the IRS and bears watching. However, at first blush it appears that a therapy practice would not be considered a qualified business because (a) it is in the health field, and even if it wasn’t, (b) it can be described as a business where the principal asset of the business is the reputation or skill of one or more of its employees. Thus, a therapy practice will likely be deemed a specified service business (SSB).

IRonMaN

Level 15

Folks seem to be really confused so far this year between a qualified business and an SSTB. Hopefully the folks working at the IRS are just as confused about the new law.

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