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Level 1
posted Jan 30, 2020 9:46:22 AM

Am I in a qualified business or trade and able to take a QBI deduction?

Part of the definition of a qualified trade or business is " the activity must be carried on with regularity and continuity". 

 

I came out of retirement for a temporary management position, contracted for July 2019 - Jan 2020.  I received my 2019 1099-MISC reporting the non-employee compensation.  Given that the definition of a qualified trade or business includes the phrase "with regularity and continuity",  and I have no plans to actively pursue another contract (but neither will I rule it out), is my 2019 self-employment a qualified business making me eligible for the QBI deduction?

 

 

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2 Replies
Level 15
Jan 30, 2020 10:11:48 AM

From you posted you qualify for the QBI. 

Expert Alumni
Jan 30, 2020 10:51:35 AM

Yes, your activity lasted long enough to be considered QBI.