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I think it is as you say: 1250 is QBI (taxed at ordinary income rates) and capital gain is not. The carve-out for capital gain from taxable income was to preclude the deduction being computed on income that has a special tax rate, therefore preventing a double benefit.

Agreed with the others. This is clearly an ethical violation for CPAs here, and both the State Boards for Accountancy and for Law, and the DE Bar Association would quickly find out and put a stop to it, especially in my small state where everyone knows everyone. This happened to a public accountant with an EA that lives close by in my small town, and he was ordered to cease and desist by court order that he flagrantly ignored and ended up with fines for nine violations totalling of over $35,000. He was also brought before the State Board of Accountancy on 3 separate times resulting in cease & desist, lost his license to practice for 2 years the first time which he ignored and it was finally permanently revoked. His fines in these instances totalled over $582,000 that was based on revenues that ultimately went back to aggrieved former clients. He was writing wills, trust and estate documents, giving legal advice related to those, and other legal work too that the DE Bar Association had been watching for a while before all of this transpired. He used to come to the CPE breakfast seminars and was pretty much lobbying our state representatives to give him a CPA license because he wanted to issue financial statements beyond compilations. He'd sit at my table and once asked me if I'd speak to my state rep on his behalf. My response was that we'd each tested and worked hard for those hours of experience to qualify, that we each had hurdles that we overcame, and that we'd EARNED the certificate and he should do the same. If you want to read about all that he did, his case is always included in my DE ethics course. I've wondered if his case is in the courses for other states too, or if it's only in ours because he was licensed here: Estep case.pdf

Same in CT. The lawyers have a strong lobby.

I have no idea what is allowed in the state of New York, but in my state of Oregon only attorneys can legally perform these tasks.

Can this be translated for me, please?

Marriage has consequences! Just ask me.

I keep telling my clients that they are not cheap. One is a smog shop smock. So far he hasn't but the magic number but I'm sure his day is coming.

LLCs have a tax/fee on gross income, not net

The $800 is call a Franchise Tax; the $900 is called a fee. Go figure!

If income is over 250,000 They will owe both. One is the corporate tax and the other I believe they call a fee.

https://www.zdnet.com/article/windows-10-graphics-intel-warns-patch-19-severe-driver-flaws-now/ https://www.theverge.com/2019/3/12/18262140/windows-10-automatically-uninstall-buggy-updates

It may not apply here but another option is to do this: Trustee makes a regular practice of distributing capital gains: pursuant to Reg. 1.643(a)(b), trustee is making a regular practice of distributing capital gains to the beneficiary as the trust instrument permits. The drafter of several trusts for which I've recently been trustee included this language which allowed the benes to have the cash to pay the tax on the distributed net income. I thought for these trusts and these benes, it was a good idea. And that 65 day rule proved very helpful as determining the distribution correctly was a challenge to manage by Dec. 31.