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DLK59
Returning Member

QBI Question regarding previous employer

At the end of Oct 2023 I retired from my employer as a member of the executive team over manufacturing.  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.  

 

Can I claim a QBI deduction on my business income 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?

 

thanks

DLK59

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