Taking deposits or making loans, but does not include arranging lending transactions between a lender and borrower. This includes services provided by financial advisors, investment bankers, wealth planners, retirement advisors and other similar professionals. Persons managing clients’ wealth, advising clients on finances, developing retirement plans, developing wealth transition plans, providing advisory and other similar services regarding valuations, mergers, acquisitions, dispositions, restructurings (including in title 11 or similar cases), and raising financial capital by underwriting, or acting as a client’s agent in the issuance of securities and similar services. Services that do not require skills unique to athletic competition, such as the maintenance and operation of equipment or facilities for use in athletic events, or the provision of services by persons who broadcast video or audio of athletic events to the public. It also excludes consulting services embedded in, or ancillary to, the activities of a trade or business that isn’t an SSTB, if there is no separate payment for the consulting services.Īthletes, coaches and team managers in sports, such as baseball, basketball, football, soccer, hockey, martial arts, boxing, bowling, tennis, golf, snowboarding, track and field, billiards, racing and other forms of athletic competition. Performance of services, other than advice of counsel, such as sales, or the provision of training of educational courses.
IM PRO GOLFER DRUG COMMERCIAL PROFESSIONAL
Persons providing clients with professional advice and counsel to assist in achieving goals and solving problems, and persons providing advice and counsel regarding advocacy with the intention of influencing decisions made by a government or governmental agency, and lobbyists attempting to influence legislators and other government officials on behalf of a client, and other similar professionals. Services that do not require skills unique to the creation of performing arts, such as the maintenance and operation of equipment or facilities for use in the performing arts, or the provision of services by persons who broadcast video or audio of performing arts to the public. Services that do not require skills unique to the field of law, such as services by printers, delivery services or stenography services.Īccountants, enrolled agents, return preparers, financial auditors and similar professionals.Īctors, directors singers, musicians, entertainers, directors and similar professionals. Lawyers, paralegals, legal arbitrators, mediators and similar professionals. Services not directly related to a medical services field, such as the operation of health clubs or spas payment processing or the research, testing, manufacture and sale of pharmaceuticals or medical devices. Physicians, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists and other similar healthcare professionals. The chart below includes excerpts from instructions for Form 8995-A, Qualified Business Income Deduction, and will help tax professionals advise their clients on this aspect of the Sec. The regulations elaborate and provide examples on which professions are included and excluded in the definition of a specified service trade or business. Individuals with taxable income below these threshold levels are not subject to the limitations. 199A deduction does not apply to SSTBs when taxable income is above $426,600 for joint filers and $213,300 for other filers, and is partially allowed when taxable income is between $326,600-426,600 for joint filers and between $163,300-213,300 for other filers (tax year 2020 amounts). What is a Specified Service Trade or Business?Īn specified service trade or business (SSTB) is 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 or owners. Department of the Treasury issued final regulations on this centerpiece provision of the Tax Cuts and Jobs Act.
IM PRO GOLFER DRUG COMMERCIAL CODE
199A of the Internal Revenue Code affords owners of sole proprietorships, partnerships and S corporations (and some trusts and estates) a lucrative 20 percent deduction on their qualified business income (QBI) beginning in tax year 2018.