ExpertHard1 markMultiple Choice
CPA · Question 27 · Area IV: Individual Taxation
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?
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:
A.
Architecture
B.
Engineering
C.
Real Estate Development
D.
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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