Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Showing results for 
Search instead for 
Did you mean: 
Employee Writer

What is a "specified" service business?

Specified service businesses includes occupations that provide personal services, except for engineering and architecture.


Examples of “specified” service businesses include:

  • Healthcare services performed by doctors, nurses, and dentists
  • Law, accounting, and actuarial services (including anyone preparing taxes)
  • Performing arts
  • Consulting
  • Athletics
1 Reply
Level 15

What is a "specified" service business?

With the exceptions you noted, if you have to go out and actually "do something" on a recurring basis to make money, that's a specified service business.
So for example, if you are a landlord that owns rental property, that's not a specified service business. You don't "do anything" on a recurring basis to make that monthly rental income. All you do is "sit there" and collect the rent when it's due.
But when it comes to QBI, rental property is somewhat of a grey area still. Basically, if you can "prove" you spent more than 250 hours directly involved in the rental property, then the income can qualify for QBI. But things like the bookkeeping & rent collection do not count as being "directly involved" in the rental property.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies