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

[shf1957]

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.

[GodFather · Accepted solution]

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-]

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

[TaxGuyBill]

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-i...

[qbteachmt]

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

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