Under the Qualified Business Income (QBI) deduction (IRC §199A), which of the following businesses is considered a 'Specified Service Trade or Business' (SSTB) where the deduction may be limited or disallowed at higher income levels?

Answer options:

Architecture firm.

Manufacturing company.

Real estate management company.

Accounting firm.

How to approach this question

SSTBs = Health, Law, Accounting, Performing Arts, Consulting, Athletics, Financial Services. Exception: Engineers and Architects are NOT SSTBs.

Full Answer

D.Accounting firm.✓ Correct

SSTBs include fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, etc. Engineering and architecture are specifically excluded from the definition of SSTB.

Common mistakes

Thinking Architecture or Engineering are SSTBs.

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