My client is a sole owner of an S Corp. He writes articles for a variety of newspapers and is the only employee. Occasionally, when he is on vacation, he will hire a subcontractor to write the articles until he returns from vacation. He makes $300,000, so no QBI for him (and he's not happy).
In my opinion, he's an SSTB. Of course, he's arguing that the "any trade or business whose principal asset is the reputation or skill of one or more of its employee/owners" part only applies to those who use their likeness for services/endorsements like TV appearances (actor) or their name/voice/trademark, such as a celebrity/athlete.
He says his position is not a unique position that requires him to specifically perform the duties because he can hire anyone to write the articles.
Is he an SSTB?
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Have you looked at the definition in the Regulation?
(xiv) Meaning of trade or business where the principal asset of such trade or business is the reputation or skill of one or more employees or owners. For purposes of section 199A(d)(2) and paragraph (b)(1)(xiii) of this section only, 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; or
(C) Receiving fees, compensation, or other income for appearing at an event or on radio, television, or another media format.
(D) For purposes of paragraphs (b)(2)(xiv)(A) through (C) of this section, the term fees, compensation, or other income includes the receipt of a partnership interest and the corresponding distributive share of income, deduction, gain, or loss from the partnership, or the receipt of stock of an S corporation and the corresponding income, deduction, gain, or loss from the S corporation stock.
https://www.law.cornell.edu/cfr/text/26/1.199A-5#b_2_xiv
I am away from my office now but I did a Google Search and I think you should be able to find your answer if you keep Googling it. A factor may or may not be what type of articles he writes, I'm not sure?
Have you looked at the definition in the Regulation?
(xiv) Meaning of trade or business where the principal asset of such trade or business is the reputation or skill of one or more employees or owners. For purposes of section 199A(d)(2) and paragraph (b)(1)(xiii) of this section only, 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; or
(C) Receiving fees, compensation, or other income for appearing at an event or on radio, television, or another media format.
(D) For purposes of paragraphs (b)(2)(xiv)(A) through (C) of this section, the term fees, compensation, or other income includes the receipt of a partnership interest and the corresponding distributive share of income, deduction, gain, or loss from the partnership, or the receipt of stock of an S corporation and the corresponding income, deduction, gain, or loss from the S corporation stock.
https://www.law.cornell.edu/cfr/text/26/1.199A-5#b_2_xiv
Thanks - yeah, the more I read through the Regs it looks like he might NOT be an SSTB since he's not a celebrity, etc.
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