Regarding the Qualified Business Income (QBI) deduction under IRC §199A, which of the following is considered a 'Specified Service Trade or Business' (SSTB) where the deduction may be limited or disallowed for high-income taxpayers?

Answer options:

Architecture

Engineering

Real Estate Development

Accounting

How to approach this question

Memorize the SSTB list: Health, Law, Accounting, Consulting, Financial Services, Athletics. Exception: Engineers and Architects are safe.

Full Answer

D.Accounting✓ Correct

An SSTB includes fields such as health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, etc. Notably, engineering and architecture are specifically excluded from the SSTB definition and are eligible for the QBI deduction regardless of income level (subject to wage/basis limits).

Common mistakes

Assuming Engineers or Architects are SSTBs.

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