Specified service trade or business (SSTB))

Forum|Forum|5 years ago
May 13, 2021
1 reply
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1. Do you have to be a SSTB to qualify for the qualified business deduction? If yes, then:

2. Am I qualified as a SSTB and therefore allowed the qualified business deduction when: I am a business where “the principal asset of such trade or business IS the reputation or skill of the employees or owners,” and all my Income is below my filing status of married filing jointly threshold.? I am sole owner /operator—-no employees.

I am not a celebrity and do not or endorse or promote any products with my identity or appear on any show.

I wasn’t sure if being below the threshold would qualify me since my income is NOT demonstrated by endorsement of products or services.?

Not A Product Question

DanielV01

Employee

1. It is the exact opposite. If you are an SSTB, and the income that qualifies as QBI is above the threshold amounts for your filing status, you receive $0 Section 199A/QBI deduction.

2. The description you give does not fully clarify whether you are an SSTB or not.

To assist you with both of these questions, please see the following Help Article: What is the Qualified Business Income (QBI) deduction? Please see the following embedded links in that Help Article: