Qualified business deduction can a construction self employed or babysitter qualify for This deduction. Also does a 1099 qualify for this deduction given from employer

[George4Tacks · Accepted solution]

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

Generally employers should not be issuing 1099's. Why was this done?

[Just-Lisa-Now-]

Im so glad I hit all those new tax law education seminars this year!

[rose323]

The taxpayer has a 1099 of course the nonemployee compensation is linked to schedule which directs to the deduction I am specifying . All positive comments please thank you

[Just-Lisa-Now-]

What is your question?   Are you trying to decide if this 1099 income is considered to be qualified trade or business income?

[rose323]

Yes .... Sorry I'm currently going to school to become a Cpa and I am a ctec preparer helping lower income communities.  I thought this would be a good place to ask yet I find it sort of mean

[rose323]

I will direct myself and review my course once again for the answer thank you for your time

[IRonMaN]

Jannett - Sounds like your clients qualify for the deduction.  Nobody is mean here, but sometimes our patience level could be a built up a little ------------------ but in any case we all wear muzzles so nobody will bite you.  Good luck!

[Just-Lisa-Now-]

Didn't mean to sound rude or mean, sorry.  We get all types of "preparers" in here, some are barely qualified to prepare their own returns, let alone those for other people.

I also am a CTEC preparer, I'm not a fancy EA or CPA  🙂

[abctax55]

No one is trying to be mean, and that extra info is appreciated.  Knowing that you are a tax pro who IS trying to understand/learn this *new* complicated law is important.
We get a lot of questions here from DIYers, and also from "tax pro's" who don't do continuing education and just rely on this forum for their research.
Good luck in school - been there/done that and it's been well worth it.

[abctax55]

Lisa, my best friend is *just* a CTECer.   I keep trying to get her to go for her EA designation, 'cuz she really knows her stuff.  I suspect she could pass the test cold turkey.  

[IRonMaN]

I admit to being a CPA, but titles don't mean much to me, especially when people try to impress me with titles.  I have seen CPAs and EPAs here that are dumber than a box of rocks ------------ and I might be insulting the rocks by saying that.  On the other hand, I see folks posting here all of the time without any fancy titles that are very knowledgeable.  So titles don't mean diddly.  So Lisa, don't sell yourself short just because you don't have a fancy title containing the letter "A".  Some of the CPAs and EAs that have posted here over the years, have an A in a title but the title could easily end with "hole".

[Just-Lisa-Now-]

Im not interested in getting involved in corporation stuff, so I wouldn't be able to pass the EA test I'm sure.

My dad, the one I argue with  LOL   He went to classes and studied his butt off for months to take the EA test back in early 2000...didn't pass any of the 4 parts.   I can make a living doing what I do with the designation I have...Im content!

[Just-Lisa-Now-]

I could never be a CPA, balance sheets make me want to kill someone.

[IRonMaN]

That really isn't a big deal.  The key is to know where to bury the bodies :expressionless:

[Just-Lisa-Now-]

I'm not a good shoveler  LOL

[IRonMaN]

Invest in a good post hole digger.  They don't go looking for small round graves :stuck_out_tongue_winking_eye:

[George4Tacks]

Interesting you should mention that. My brother selected a rather hippy cemetery at Whiskeytown Dam for the burial of cremains of our parents, his wife & himself. We enquired as to whether we need the cemetery to do the digging and were told "Just bring a post hole digger and you will be fine."

[IRonMaN]

Those gosh darn hippies :sunflower:

[rose323]

Thank you ! Everyone !

[IRonMaN]

:+1:

[itonewbie]

x2:+1:

[abctax55]

Only YOU, based on your professional experience AND all the CPE that you've done (right?) concerning 199A can determine whether your client's activity/income rises to the level of a trade or business.  

[abctax55]

IMHO - the construction client - YES to 199A.

The babysitter....maybe.  

Give us more info on the babysitter and we'll all form a collective opinion.

[George4Tacks]

I think people go to a babysitter is a " trade or business where the principal asset is the reputation or skill of one or more of its employees." and therefore NOT a Qualified Trade or Business. 

Even construction might be a one person shop and hence relies on the reputation of the tradesperson. 

I just love how clear the lines are. 

[Just-Lisa-Now-]

you mean an SSBT, not a qualified trade or business...right?