Level 6

Solved

Question about qualified trade or business under Section 199A on Sch C

Forum|Forum|4 years ago
March 21, 2022
3 replies
18 views

I am trying to understand this. If I have it right in my mind, a trade or business that does NOT qualify is some what like myself, tax prepare or financial advisor or some one with advice etc.. But a qualified trade or business would be like a store, a logger, a carpenter, a plumber etc... I've read so many articles.. that it just confuses me. Please HELP make this grey area black and white for me.

I thank you in advance for any help you can share to make this understandable.

ProSeries Professional

This topic has been closed for replies.

Best answer by GodFather

Tax preparation / accounting do not qualify? Here are a few good articles on the topic even if a couple are somewhat dated:

Qualified Business Income Deduction (QBI): What It Is - NerdWallet

AICPA recommends QBI improvements (journalofaccountancy.com)

TCJA-Qualified-Business-Income-Deduction-Special-Report.pdf (thomsonreuters.com)

It's obviously a nice benefit for those who qualify. Hopefully the current administration does not eliminate it.

GodFather

Answer

Intuit Community Champion

Tax preparation / accounting do not qualify? Here are a few good articles on the topic even if a couple are somewhat dated:

Qualified Business Income Deduction (QBI): What It Is - NerdWallet

AICPA recommends QBI improvements (journalofaccountancy.com)

TCJA-Qualified-Business-Income-Deduction-Special-Report.pdf (thomsonreuters.com)

It's obviously a nice benefit for those who qualify. Hopefully the current administration does not eliminate it.

Just-Lisa-Now-

Intuit Community Champion

I cant think of any business that DOESNT qualify. There are some income limitations for certain types of business though.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

"I cant think of any business that DOESNT qualify."

Insta and TikTok celebrities and influencers. All those kids need to pay more taxes. Yay!

Don't yell at us; we're volunteers

T

TaxGuyBill

Level 15

As was noted by Lisa, all businesses potentially qualify for it, but a "Specified Service Trade or Business" (SSTB) (including tax preparers) have further restrictions.

You can start a Q5 on the link below, and keep reading.

https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs

Sign up

Login with SSO

Let's get you signed in

Login with SSO