Can I deduct 20% of my business income (QBI)?
The answer is maybe. Click the link below to Cherry Bekaert. They provide financial and management services. There explanation of the Sec199A provision is the best I’ve read on the subject. I have highlighted the section I wanted to present. They say it better than me.
I don’t qualify and a lot of businesses I work with do not. Here is why (bold text is mine)
Specified service trades or businesses that are generally prohibited from generating QBI: “SSTBs include “any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or 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; or any trade or business which involves the performance of services that consist of investing and investment management, trading, or dealing in securities, partnership interests or commodities.” Engineering and architectural businesses are specifically removed from the definition of an SSTB.” Cherry Bekaert FAQ article
Just remember this when your tax preparer says you don’t qualify. If you are having tax issues, contact me.