I am going to post this question over here hoping to get an opinion. At the end of Oct 2023 I retired from my employer as a member of the executive team over manufacturing. As a member of the executive staff, my role included the operational end (costing) of annual budgets, setting the capital plan, developing continuous improvement plans, and personnel management of the plant leaders and operations corporate staff. Beginning in November of 2023, I began consulting with my previous employer through my sole proprietor LLC. My services, billed by the hour, are for project specific assignments that are manufacturing or technical in nature. My assignments are provided to me by my successor, the current VP of Manufacturing. I received a 1099-NEC for my services in 2023. In no way am I providing services related to my previous and only role with this company and I do not report or take direction from the CEO as I previously did. My role is a combination of project management/corporate engineering and strictly project based. I am only working part time and I determine my schedule. There are no other clients at this time.
At the moment I claiming a QBI deduction on my business income while being within my 3 year timeframe. Other than personal investment income, my primary source of income was a W-2 and a 1099-NEC from the same company. Am I raising the risk of an audit if the deduction is claimed? Does anyone on this discussion group have an opinion on claiming the QBI deduction? I will file tomorrow.
Thank you,
DLK59
