WebSep 10, 2024 · The regulations state that a SSTB includes any trade or business that provides 80% or more of its property or services to a SSTB, if the two businesses share 50% or more common ownership. Let’s look at an example: Partners A, B & C practice dentistry and have three locations. WebThe IRS defines an SSTB as a trade or business where “the principal asset is the reputation or skill of one or more of its employees or owners.” The SSTB must be a pass-through …
Tax Strategies for Specified Service Businesses - US News
WebMar 27, 2024 · Most importantly, if your business is an SSTB and you have taxable income of: Under $157,500 ($315,000 for joint filers) : Your profit FULLY qualifies for the 20% deduction – EASY! Between $157,500-$207,500 ($315,000-$415,000 for joint filers) : Your profit PARTIALLY qualifies for the 20% business deduction (reduced – more complex … WebJun 7, 2024 · A qualified trade or business is one that includes, most self-employed taxpayers and small business owners. It allows them to exclude up to 20% of their qualified business income from federal income tax (but not … joined wing rc plane
QBI Deduction Limitations and the SSTB Rule - PICPA
WebMay 20, 2024 · According to Internal Revenue Code 199A, a specified service trade or business (SSTB) may not qualify for all or any of the QBI deduction. QBI deductions begin … WebMar 30, 2024 · Section 199A states that an SSTB includes any business involved with the performance of financial services. Although the term by itself might seem broad enough to include banking, the definition referenced in the statute was … WebNov 15, 2024 · Here the IRS has stated that if a business that otherwise wouldn’t be considered an SSTB has 50 percent or more common ownership with an SSTB (including related parties) and is providing substantially all of its property or services to the related SSTB it will be considered an SSTB. how to help children deal with divorce