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LLC Income

Forum|Forum|6 years ago
January 28, 2020
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Statement A "QBI pass through reporting" shows my income as "SSTB" what is that?

--what are the PTP and Aggregated classifications

The system automatically classified my income as SSTB -- does it matter

thanks for any help

Best answer by ColeenD3

It could matter, but probably not. It has to do with types of entities and income levels that could potentially exclude you from the QBI.

A qualified trade or business is any trade or business, with two exceptions:

Specified service trade or business (SSTB), which includes a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading, dealing in certain assets or any trade or business where the principal asset is the reputation or skill of one or more of its employees. This exception only applies if a taxpayer’s taxable income exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers.

Please see this LINK for more information.

ColeenD3Answer

It could matter, but probably not. It has to do with types of entities and income levels that could potentially exclude you from the QBI.

A qualified trade or business is any trade or business, with two exceptions:

Specified service trade or business (SSTB), which includes a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading, dealing in certain assets or any trade or business where the principal asset is the reputation or skill of one or more of its employees. This exception only applies if a taxpayer’s taxable income exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers.

Please see this LINK for more information.

O

OldCarGuyAuthor

This was very helpful -- This the first year I'm doing my own taxes -- my tax acct has been classifying my LLC income as non- SSTB. So when Turbo tax called it SSTB I didn't know what to do -- thanks for the information.