Clarity on whether I can use the Qualified Business Deduction

racehorse3 · ‎February 18, 2020

I worked as an accountant for a company for several years that had a subsidiary. In 2017, they sold that subsidiary. I quit working for the company in April. The company who bought the subsidiary called me to do some accounting work for them for a short amount of time. I was given a 1099 for my work there. I think this is clearly within the rules of using the deduction, but just want to make sure.

KarenJ2 · ‎February 18, 2020

You may qualify if you have self-employment income. It depends on your taxable income.

That said, not every eligible business automatically qualifies for the deduction. In particular, some types of service businesses (SSTBs) are disqualified once the taxable income on the return exceeds $207,500 ($415,000 if filing jointly).

What is the Qualified Business Income deduction

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