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posted Mar 10, 2022 10:56:44 AM

Does Doordash fall under Section 199A?

I am almost done filing and it sent me to a question regarding: "Is this activity (Doordash) a qualified trade or business under Section 199A?" Yes or No?

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Expert Alumni
Mar 10, 2022 11:24:44 AM

Yes this is a Qualified Business.  Section 199A of the Internal Revenue Code provides many owners of sole proprietorships, partnerships, S corporations and some trusts and estates, a deduction of income from a qualified trade or business. The deduction has two components.

 

This component of the deduction equals 20% of QBI from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. Depending on the taxpayer's taxable income, the QBI component is subject to multiple limitations including the type of trade or business, the amount of W-2 wages paid by the qualified trade or business and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. It may also be reduced by the patron reduction if the taxpayer is a patron of an agricultural or horticultural cooperative. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.

 

Use this link for more information:  Qualified Business Income Deduction