Are tatoo artists considered SSTB. What's the opinion?

Forum|Forum|6 years ago
December 7, 2019
2 replies
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Best answer by garman22

https://accountants-community.intuit.com/questions/1793641-qbi-and-sstb-would-the-following-qualify-...

Good question. I lean to yes on a one person shop. Possibly a no if its a multi-person shop. But thats only my opinion. I had one artist a couple years ago but not now.

G

garman22

Answer

Intuit Community Champion

https://accountants-community.intuit.com/questions/1793641-qbi-and-sstb-would-the-following-qualify-...

Good question. I lean to yes on a one person shop. Possibly a no if its a multi-person shop. But thats only my opinion. I had one artist a couple years ago but not now.

T

TIMMBOAuthor

Level 4

Makes sense, Many tatoo artists utilize the same shop , sort of like beauticians, but handle everything themselves.

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TaxGuyBill

Level 15

No, I don't see how it would qualify as a SSTB.

To me, it does not fit into any of the categories. If you are thinking of the 'reputation or skill' one, the IRS has said in the Regulations that is extremely limited, and would not apply to tattoo artists.

https://www.irs.gov/pub/irs-drop/td-reg-107892-18.pdf#page=73

the term any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners means any trade or business that consists of any of the following (or any combination thereof):

(A) A trade or business in which a person receives fees, compensation, or other income for endorsing products or services,

(B) A trade or business in which a person licenses or receives fees, compensation, or other income for the use of an individual’s image, likeness, name, signature, voice, trademark, or any other symbols associated with the individual’s identity,

(C) Receiving fees, compensation, or other income for appearing at an event or on radio, television, or another media format

https://www.irs.gov/pub/irs-drop/td-reg-107892-18.pdf#page=227

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garman22

Intuit Community Champion

That was my thought, Bill. I looked at the reputation/skill. I had a tattoo done on my leg that was based on the artists reputation and skill of the specific style I wanted. Im not overly convinced that its not but......Im not married to my opinion either.

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