What is Specified service trade or business?
In short
A specified service trade or business is one in fields such as health, law, accounting, actuarial science, consulting, athletics, financial services and brokerage, or one whose main asset is the skill or reputation of its owners or employees.
Key takeaways
- Owners above an income threshold lose the qualified business income deduction for these businesses, after a phase-in range.
- Below the threshold, they qualify like any other business.
- Engineering and architecture are specifically excluded from the list.
Where it's tested
TCP: Individual Tax Planning Strategies — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer sells stock at a $10,000 loss on December 10 and repurchases the same stock on December 28 of the same year. What is the tax result?