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Thought I would put together a little poem to help me remember basics when speaking with clients: Can I take QBI Deduction Let's see your personal situation You're an employee, not an owner Not for you, you're a loner You have a business First step in this messiness Not for C corps, just a big blankness QBI, SSB, W2s, Qualifying Property, there's an exception under threshold amount 315K and 157.5K is the count I think I'm good to go for now.

SSTB restrictions kick in at the threshold levels. If they are below the threshold levels the restrictions do not apply. Below taken from IS FAQ regarding section 199A & SSTB's. 8. In 2018, I will report taxable income under $315,000 and file married filing jointly. Do I have to determine if I am in an SSTB in order to take the deduction? Is there any limitation on my deduction? A8. No, if your 2018 taxable income is below $315,000, if married filing jointly, or $157,500 for all other filing statuses, it doesn’t matter what type of business you are in. You will be able to deduct the lesser of: a) Twenty percent (20%) of your QBI, plus 20 percent of your qualified REIT dividends and qualified PTP income, or b) Twenty percent (20%) of your taxable income minus your net capital gains.

I believe that you are correct. REIT Dividends are the only Dividends that qualify for the QBI deduction.

It ain't me, it ain't me, I ain't no fortunate one.

I thought banks only issued 1099-INT if the amount was $10 or more.

I think it has something to do with REIT dividends.

mircpa, The specified trades or businesses are outlined in the regs. Law, accounting financial services, etc. Everyone else who operates from a passthrough entity is qualified, unless you are a business that makes their income from the reputation of the owner (think sole proprietor hair dresser), then you get lumped in with the SSTB crowd. Example - I operate a house painting business as a S corp. No one knows I am the owner, I send crews out to do the work & I have a team of sales staff to recruit business. I am a qualified business. Example 2 - I operate "Tom's Best in Modesto House Painting". Everyone knows me because I do everything from the estimate to the painting to the invoicing to the back office work. I get almost all my work from referrals. I don't have employees. I live off my reputation. I get lumped in with the SSTB rules. The kicker is, under the thresholds, none of this matters. Everyone in a passthrough (leaving out rentals) gets the deduction if their income is under the thresholds. SSBTs get treated exactly like every other business until the threshold limits kick in. I think that is the point Terry was trying to make. Tom Modesto, CA

I had someone tell me that he'd been told that as long as he left the money in his SMLLC and did not send himself a 1099, none of the money was taxable. He said a CPA had told him that! Either there was a HUGE misunderstanding somewhere (possible), or the guy giving info wasn't a CPA (possible), or he was selling/giving the kind of tax "advice" that lands the listeners into long-term opportunities to wear orange jumpsuits (also quite possible).

We can all relate to what they'll face come Monday: HUGE piles of unopened and time-sensitive correspondence. Past-due action items. More things that *must* be done today than could possibly be done in a week. And that's before the coffee machines are finished brewing or the fax machines are turned back on. You know, the kind of day most of us face EVERY Monday during the tax season! (Note to Judy: meant as humor, with a goodly dollop of true sympathy. And a suggestion for background music for them - The Pretenders' "Back on the Chain Gang." I do wish them the best plowing through it all.)

One of my clients said her son formed an LLC for his painting business because it limited his liability for taxes. All he had to do was file a piece of paper with the Secretary of State. He told her once the LLC was formed, he didn't have to pay tax on any of his income. After an embarrassing period of silence accompanied by my "deer in the headlights" look, I changed the subject.

Some folks are born silver spoon in hand Lord, don't they help themselves, oh But when the taxman comes to the door Lord, the house looks like a rummage sale, yes John Fogerty & CCR

Only if you exceed the income thresholds. Small time folks like me can still take the QBI, possibly. A lengthy read but seems to be the best analysis given to date.