Specified Service Trades or Businesses Limitation
Generally, the QBI deduction isn’t available for income from Specified Service Trades or Businesses (SSTBs).
The proposed regulation’s definition of an SSTB includes any trade or business based on the performance of services in the field of health, which applies to the following:
- Physicians
- Pharmacists
- Nurses
- Dentists
- Veterinarians
- Physical therapists
- Psychologists
- Other similar healthcare professionals
Income from these practices therefore wouldn’t typically be eligible for the 20% deduction
HOWEVER
Ancillary Health Care Businesses
There are many ancillary lines of businesses related to health care—such as imaging centers, labs, and ambulatory surgery centers—that receive revenue streams from facility-related fees. Based on the language in the law, it isn’t yet clear whether these ancillary health care organizations will be subject to the service-business limitation, and the new IRS regulations didn’t add clarity here. Ancillary health care organizations may need to evaluate to what extent their business operations fall outside of providing health care to patients, and whether their owners are comfortable claiming the QBI deduction absent clear IRS guidance.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3
- Just donating my time
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