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Returning Member
posted Feb 19, 2019 3:35:46 PM

Investment adviser qualify for pass-through status

Does a sole proprietor investment adviser qualify for pass-through status and its 20% deduction in qualified business income?  I'm under the taxable income threshold.

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1 Best answer
Level 15
May 6, 2019 6:44:48 PM

3 Replies
Expert Alumni
Feb 19, 2019 6:21:16 PM

Yes, as a sole proprietor you would qualify for the new 20% Qualified Business Income Deduction. As an investment adviser, your business would be considered a specified service trade or business (SSTB). If your total taxable income is under $157,500 ($315,000 if filing jointly), the limits on the deduction will not apply.

New Member
May 6, 2019 5:17:28 PM

I have a single shareholder S cor[.  I am trying to pass through shareholder distributions as ordinary income and cannot get the Premier to accept the 17c figure from my K1 as income.  It completely ignores it. This is income that is taxable.  What gives?

Level 15
May 6, 2019 6:44:48 PM